Uncertainty continues to loom over the global economy, remaining a central topic of discussion. Perry Warjiyo, the Governor of Bank Indonesia (BI), emphatically states that there are several elements of uncertainty in the global scenario that require collective attention.

In a video posted on BI's Instagram channel on Wednesday, October 18th, Perry outlines various factors contributing to this uncertainty, such as geopolitical tensions, global economic fragmentation, and the impact of extreme weather.

In addressing these challenges, Perry acknowledges that Indonesia cannot solely rely on a single policy. Therefore, a combination of various policies is necessary to mitigate the impact of this uncertainty on Indonesia.

These policy combinations include adjustments to benchmark interest rates, the implementation of macroprudential policies, strict monitoring of exchange rates, and close cooperation among economic authorities.

Moreover, concrete steps are needed to boost domestic economic growth. Perry states that these steps can be realized through three primary approaches.

Firstly, there are broader investment opportunities. Secondly, there is an increase in the added value of natural resources through the process of industrialization. Thirdly, support for micro, small, and medium-sized enterprises (MSMEs) by expanding market reach through cross-border payment system development.

Governor Perry conveyed all of these perspectives while participating in the International Monetary Fund (IMF) and World Bank meetings held last week in Morocco.