Member countries of the IMF called for coordinated action to address growing global uncertainty during the IMF–World Bank Spring Meetings in Washington, D.C. (16–17/04).

The IMF stated that the global economy remains resilient despite increasingly complex risks, particularly driven by the conflict in the Middle East.

Bank Indonesia Commits to Stability Amid Global Challenges

Bank Indonesia Governor Perry Warjiyo reaffirmed the central bank’s commitment to maintaining macroeconomic and financial system stability.

This includes managing a flexible yet measured exchange rate, strengthening monetary instruments to sustain the attractiveness of domestic assets, and carefully managing liquidity to support growth.

Coordination with the government continues to focus on fiscal discipline, including maintaining the deficit below 3% of GDP and reallocating spending toward productive sectors.

Indonesia is also advancing structural transformation through downstream industrial development and the expansion of technology-based sectors to support sustainable economic growth.

Global Policy Agenda Targets Inflation and Financial Stability

Finance ministers and central bank governors agreed on a Global Policy Agenda to address economic pressures and transformation.

The IMF emphasized the importance of maintaining inflation expectations through clear policy communication to improve the effectiveness of monetary policy.

Authorities are also encouraged to strengthen financial stability through enhanced banking supervision and regulation, while preserving fiscal credibility amid limited fiscal space.

Countries are urged to pursue structural reforms, strengthen energy resilience through diversification and renewable energy, and enhance international cooperation.

Technological Change and AI Present Opportunities and Risks

The IMF highlighted significant changes in technology, demographics, and the environment as factors creating both challenges and opportunities.

Artificial intelligence is seen as having the potential to increase productivity and welfare, while also posing risks of disruption across sectors due to rapid technological advancement.

IMF Urges Strengthening of Global Financial Safety Nets

The IMF stressed the need for collective efforts to strengthen global financial safety nets to improve resilience.

This includes providing support to member countries in need and enhancing the IMF’s capacity in surveillance, financing, and technical assistance.

PHOTO: BANK INDONESIA

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].