War Without End, BI Says Global Economic Prospects Remain Unclear

Jakarta, CNBC Indonesia - Bank Indonesia’s board of governors considers the global economic outlook to remain unclear. Ongoing war and commodity price fluctuations continue to create high uncertainty in the economy and financial markets. “Global economic prospects are weak, accompanied by financial market uncertainty influenced by the intensity of the war in the Middle East,” said Acting Governor of Bank Indonesia Destry Damayanti at a press conference on Wednesday (19/8/2026). Destry said global economic pressure will also be driven by inflation in the upper range of 3% to 4.5% in 2026. High inflationary pressure means central banks in various developed countries, particularly the United States, are likely to continue raising their benchmark interest rates. “We expect the Fed Funds Rate to rise in the fourth quarter,” Destry said.