Global Investors Thumbs Up Indonesia's Policies to Maintain Economic Stability

Global investors view Indonesia’s policy credibility and consistency in maintaining economic stability positively amid high global uncertainty. This was evident in meetings between Bank Indonesia Governor Perry Warjiyo and several investors in New York and Boston, where he served as a speaker at the Harvard Kennedy School Policy Talk 2026, as well as in meetings with Indonesia’s Permanent Representative to the United Nations in New York. All these strategic meetings were part of the IMF Spring Meeting 2026 in the United States. In the meetings with investors, Governor Perry affirmed that the policy mix is on the right track, with a focus on stability and external resilience through interest rate management, foreign exchange interventions, and strengthening domestic liquidity, supported by fiscal commitments to keep the deficit below 3% of GDP through subsidy reforms and more productive budget reallocations. “We will continue to ensure a consistent and responsive policy mix to maintain stability and support Indonesia’s economic growth amid global dynamics,” Perry stated, quoting a press release on Tuesday (14/4/2026). In addition, as part of the IMF Spring Meeting 2026, Bank Indonesia also participated as a speaker in a discussion with Harvard Professor Jeffrey A. Frankel and Harvard Visiting Scholar M. Chatib Basri titled “Stability in an Age of Shocks: Rethinking Macro Policy in a Fragmented World.” The discussion highlighted the increasingly complex global environment marked by fragmentation, rising geopolitical tensions, and financial market volatility. Frankel emphasised that global shocks are occurring more frequently and are difficult to predict, thereby increasing risks of pressure on the global economy. In response, Perry affirmed that a credible, flexible, and coordinated policy mix is key to maintaining stability while promoting sustainable growth amid global uncertainty. This message was also conveyed to Indonesia’s Permanent Representative to the United Nations in New York, Umar Hadi, as part of strengthening communication and aligning Indonesia’s economic narrative at the global level. The two-way meeting also provided perspectives on current geopolitical dynamics and global conditions, which will serve as input for future economic policy formulation. On that occasion, Perry emphasised that Indonesia’s economic fundamentals remain solid, supported by strong growth and controlled inflation, as well as close synergy between monetary and fiscal policies to maintain stability and drive growth. Moving forward, Bank Indonesia will continue to strengthen policy communication with global investors to ensure market perceptions remain managed amid global dynamics. Bank Indonesia also commits to maintaining the consistency of a responsive policy mix, supported by close synergy with the Government and related authorities, to strengthen stability and support Indonesia’s economic growth.