In front of global investors, BI Governor affirms Indonesia's policies are "on track"

Bank Indonesia Governor Perry Warjiyo affirmed to global investors during the IMF Spring Meeting 2026 in the United States that Indonesia’s policy mix is “on track” or on the right path. The policy mix focuses 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 via subsidy reforms and more productive budget reallocations. “We continue to ensure a consistent and responsive policy mix to maintain stability and support Indonesia’s economic growth amid global dynamics,” said Perry, as quoted from an official statement received in Jakarta on Tuesday. In the series of International Monetary Fund (IMF) meetings, BI 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 (UN) 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. BI conveyed that going forward, it will continue to strengthen policy communication with global investors to ensure market perceptions remain managed amid global dynamics. In addition, BI is committed 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.