Bank Indonesia (BI) predicts that global economic uncertainty will remain high in the future due to ongoing tariff negotiations between the US and a number of countries, as well as escalating geopolitical tensions in the Middle East.
"This condition requires vigilance and strengthening of policy responses and coordination to maintain external resilience, maintain stability, and encourage domestic economic growth," said BI Governor Perry Warjiyo in a press conference on the results of the BI Board of Governors Meeting (RDG) in June 2025.
BI assesses that currently global economic uncertainty has eased slightly, although it remains high due to the dynamics of reciprocal tariff negotiations in the United States (US) and geopolitical tensions in the Middle East.
Perry noted that various indicators showed that the United States' tariff policy had an impact on slowing the world economy.
Economic growth in developed countries, namely the United States, Europe, and Japan, is on a downward trend, amidst the implementation of expansionary fiscal policies and monetary policy easing in these countries.
China's economy is also slowing down due to declining exports, especially to the United States, amid slowing domestic demand.
Meanwhile, the Indian economy is expected to grow well, mainly driven by continued strong investment.
"With these developments, the prospect of global economic growth in 2025 remains at 3 percent," Perry said.
