{
    "success": true,
    "data": {
        "id": 1874310,
        "msgid": "bi-rising-global-uncertainty-demands-strengthened-policy-response-1784710638",
        "date": "2026-07-22 15:05:13",
        "title": "BI: Rising Global Uncertainty Demands Strengthened Policy Response",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Bank Indonesia has warned that renewed global economic and financial market uncertainty, exacerbated by US-Iran tensions disrupting the Strait of Hormuz, requires a stronger fiscal and monetary policy response. The central bank projects global growth will remain weak at 3 per cent in 2026, with inflation rising to 4.5 per cent, prompting tighter monetary policy worldwide. Despite external headwinds, Indonesia's economy is expected to remain resilient, growing between 4.9 and 5.7 per cent, supported by robust domestic demand and government stimulus programmes.",
        "content": "<p>Bank Indonesia (BI) views the renewed increase in global economic and\nfinancial market uncertainty as necessitating a strengthened response\nand synergy between fiscal and monetary policies to bolster external\nresilience, maintain stability, and drive domestic economic growth. BI\nGovernor Perry Warjiyo explained that global uncertainty has risen again\nfollowing the re-escalation of conflict between the United States (US)\nand Iran in early July 2026. \u201cTraffic in the Strait of Hormuz has been\ndisrupted again, hampering production and international trade supply\nchains, and causing world oil and commodity prices to reverse course and\nrise,\u201d Perry stated during an online press conference following the BI\nBoard of Governors Meeting in Jakarta on Wednesday. The outlook for\nglobal economic growth in 2026 is expected to remain weak at 3 per cent,\nwith global inflation rising to around 4.5 per cent. Global monetary\npolicy is becoming tighter in response to the increasing inflationary\npressures. The US monetary policy rate, or Fed Funds Rate, is expected\nto rise earlier, in the fourth quarter of 2026. US Treasury yields also\nclimbed sharply to 4.56 per cent for the 10-year tenor and 4.18 per cent\nfor the 2-year tenor on 20 July 2026, and are forecast to increase\nfurther, driven by the widening US fiscal deficit. In global financial\nmarkets, capital outflows from emerging markets are shifting to US\nfinancial markets and safe-haven assets, thereby strengthening the US\ndollar against both advanced economy currencies (DXY) and emerging\nmarket currencies (ADXY). Meanwhile, Indonesia\u2019s economic growth remains\nwell maintained, supported by domestic demand. Developments in the\nsecond quarter of 2026 indicate that government consumption grew\nstrongly, underpinned by the continued realisation of priority\nprogrammes and accelerated government spending, particularly the\ndisbursement of the 13th salary for civil servants and the distribution\nof social assistance to Beneficiary Families. Household consumption is\nbeing sustained by various government stimuli, such as food aid,\ntransport fare discounts, and the national meal and vocational training\nprogramme. Investment is primarily supported by building investment\nrelated to the realisation of the National Priority Work Programme,\nalthough private investment still needs to be further boosted. From the\nexternal side, export performance must continue to be strengthened to\ncapitalise on high world commodity prices amid a slowing global economic\noutlook. Sectorally, growth in the processing industry, construction,\ntransportation, and warehousing sectors remains solid, in line with the\nrealisation of government programmes. Going forward, the implementation\nof various government priority programmes to drive sources of economic\ngrowth from domestic demand and strengthen the economic growth structure\nwill continue to be optimised. In line with this, BI is also continuing\nto strengthen its policy mix through monetary, macroprudential, and\npayment system policies that are closely synergised with government\npolicies to maintain stability while supporting sustainable economic\ngrowth. \u201cBank Indonesia estimates that Indonesia\u2019s economic growth in\n2026 will remain solid, in the range of 4.9 to 5.7 per cent,\u201d Perry\nsaid.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bi-rising-global-uncertainty-demands-strengthened-policy-response-1784710638",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}