TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Perry Warjiyo pushed for better coordination among multilateral stakeholders upon facing the increasing global economy risk and the heating international trade dispute.
“The strengthening of the global financial safety net is essentially needed, which includes strengthening regional partnership with regional financing arrangements (RFAs),” said Perry according to Bank Indonesia’s official release on Sunday, October 14.
Perry also said that the International Monetary Fund (IMF) needs to improve its surveillance and assist its members to strengthen its policy mix framework and help provide the best solution to matters being faced by fellow members.
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The 2018 IMF-World Bank Annual Meetings during the past week highlighted the global economic growth that continues to flourish unevenly. The global economic growth is projected to reach 3.7 percent in 2018 and 2019, 3.9 percent lower compared to the previous prediction.
The global economic expansion is basically supported by the United States’ economic condition that saw a significant economic rise driven by a Proxyclical fiscal stimulus policy by the US government.
However, Perry argues that Indonesia’s economy had been resilient in facing the dynamics of the global economic pressure and the domestic economy continues to run stably. Throughout 2018, Bank Indonesia has increased the BI 7-day reverse repo rate up to 150 points, or 5.75 percent that strengthens Indonesia’s external policy.
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