Jakarta, The Indonesia Post – Governor of Bank Indonesia (BI) Perry Warjiyo estimates that the global and domestic economy in 2022 will grow more balanced, although there are still a number of risks that have the potential to disrupt economic stability and recovery.
“The improvement in the global and domestic economy continues despite facing the Delta variant. Stability is maintained, including the financial system,” he said in a working meeting with Commission XI of the Indonesian House of Representatives in Jakarta, Thursday.
For domestic economic growth, Perry said this balance will be supported by export performance as well as improving consumption and investment.
On the other hand, a number of risks will still overshadow the global and national economic balance, such as the normalization of monetary policy of the US central bank or The Federal Reserve (The Fed) and the outbreak of the Omicron variant of COVID-19.
In addition, the balance of global and domestic economic growth this year will also be influenced by geopolitical risks, high commodity prices and inflation.
Perry projects that the Fed will raise interest rates four times in 2022, namely in March, June, September and the end of the year which will also have an impact on Indonesia.
According to him, the increase in the Fed’s interest rates will have an impact on increasing US Treasury yields and capital flows to emerging markets, including Indonesia.
Therefore, Perry ensures that the coordination of the Financial System Stability Committee (KSSK) will continue to be strengthened to jointly restore the economy and maintain financial system stability.
“Opportunities exist to encourage economic growth but there are also risks that we need to anticipate in order to continue to support Indonesia’s economic recovery,” he said. (ojn/bbs)
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