Three Advice from BI Governor for Facing Economic Uncertainty

BI Governor Perry Warjiyo (Photo: Capture Youtube screen of the Presidential Secretariat)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo admitted that the current global economic situation is still shrouded in continuing uncertainty. The threat of a global economic slowdown and world inflation rates which tend to be at high levels have created pressure in their own right after the pandemic situation several years ago.

Therefore, in facing future economic uncertainty, Perry emphasized that there are three main challenges that need to be paid attention to.

"First, increasing economic and geopolitical fragmentation stemming not only from the Russia-Ukraine conflict, but also geopolitical tensions between China and the United States," he said in a written statement, quoted Monday, September 18.

According to him, this condition then pushed the source of world economic growth to shift. Furthermore, Perry revealed the second point was the rapid development of digitalization which targets various economic and financial sectors, one of which is the payment system.

It was stated that this transformation needs to be supported by innovation that facilitates the flow of transactions in the economy.

"Bank Indonesia as the payment system authority is carrying out a transformation in creating credible payment system services based on the latest technology such as fast payment innovation," he said.

Third, continued Perry, namely related to climate change and global population demographics.

"As stated in the Paris Agreement, Indonesia is committed to reducing carbon emissions, so a transition program is needed that is able to help move demographic factors to create a sustainable economy and finance," concluded Perry.