TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo stated that there are a number of changes in the global spectrum in the past few years such as the shifting trend of globalization to digitalization which forces policymakers to constantly respond to the rapid changes.
“We are facing the death of globalization and the rise in digitalization,” said Perry in his acceptance speech at the 13th Bulletin of Monetary Economics and Banking (BMEB) International Conference in Bali today.
He argues that there are four characteristics backing his theory as the first example takes form in the anti-global trade sentiment between the United States and China. This condition remains for a long period of time he says many experts predict that the U.S. will fall into a recession by 2021.
The BI Governor then compared the current situation to past events where global trade took the role as a way for a country to improve their economic growth. This he says is a stark contrast to what can be observed today where a number of countries rely heavily on their internal strength in facing the global trade.
Perry then asked the conference’s audience; “Is there still room available for global trade to return to the state of equilibrium?”
As for digitalization, Perry mentioned its growing trend, especially in the financial sector where the services of banks and financial institutions are slowly being outperformed by financial technologies or fintech.
“This is the rise of digitalization,” the Bank Indonesia Governor said.