Unfavorable Global Economy since 2018, Says Bank Indonesia Gov

TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo broke down the reason why he thinks the world’s condition has been less than favorable since 2018, which includes Indonesia.

“It became worse since I took the role as Governor,” said Perry at the BI headquarters on Wednesday, March 27.

The hostility, said Perry, came in the form of United States’ federal reserves’ rapid interest rate rise, added to the economic tension between the U.S. and several countries namely China. These series of events slowed the world’s economic growth, the dropping value of commodities, and Brexit.

Perry argues that foreign investments withdrawing from emerging markets have caused the weakening of rupiah and only further strengthened the US dollar.

“Tensions steadily hit. This affected emerging markets where many did not survive like Turkey and Argentina that have entered the economic and financial crisis,” said the Bank Indonesia Governor.

However, Perry Warjiyo said that Indonesia must be thankful that its economy in 2018 ended in a respectable note with a reestablished stability, controlled inflation rate, stable exchange rate, and had seen a sign of strengthening to Rp14,100-Rp14,200.

“The positive momentum was managed well at 5.17 percent in the middle of a global recession, this is quite an achievement,” said Perry.

MUHAMMAD HENDARTYO