No. 27/248/DKom
The global economy is showing resilience as the spirit of multilateralism strengthens to maintain global economic stability. Growth is stronger than forecast, underpinned by credible policies, increasing investment and trade ahead of sweeping tariff adjustments and the more limited impact of trade uncertainty than previously expected. However, the global economic outlook remains overshadowed by the risks associated with inward-looking policies, labour market inequality, the expanding role of non-bank financial institutions and uncertainty concerning the impact of artificial intelligence on productivity. This underlines the importance of adaptive and collaborative international policy coordination. This was the key takeaway of the IMF-World Bank Annual Meetings, held from 13-18th October 2025 in Washington DC, United States.
Representing the region[1], the Governor of Bank Indonesia, Perry Warjiyo, outlined three key policy steps Indonesia is taking to maintain economic resilience, while ensuring inflation remains on target. First, implementing a monetary and fiscal policy mix aligned with financial stability. Second, implementing structural reforms to strengthen growth through the downstreaming of natural resources, digitalisation, financial inclusion and job creation. Third, strengthening trade and investment cooperation in the ASEAN region and with key trading partners, such as the US, China, Japan, India and Europe. “Multilateralism is far more effective than unilateralism in pursuit of global economic growth and overcoming imbalances," emphasised Governor Perry.
Responding to global dynamics, G20 finance ministers and central bank governors reaffirmed their commitment to strengthening multilateral cooperation and credible policies to maintain economic stability by promoting balanced fiscal and monetary policies, strengthening resilience against financial risk and continuing reforms towards sustainable and inclusive growth. Specifically, the meeting also highlighted efforts to strengthen the international financial architecture through the reform of multilateral development banks (MDBs) and addressing debt vulnerabilities. The G20 meeting concluded with the handover of the G20 Presidency from South Africa to the United States for 2026.
At the IMF meeting, finance ministers and central bank governors agreed the global policy agenda, containing measures to maintain stability and strengthen growth resiliency amid persistently high uncertainty. The IMF recommends four major policy directions. First, member countries are encouraged to implement more prudent financial management in the medium-term to strengthen fiscal resilience without sacrificing investment and social spending. Second, central banks need to maintain price stability, while also maintaining independence and transparency. Third, financial sector policies need to enhance vigilance against potential market risks and the interconnectedness between financial institutions. Fourth, structural reforms are required towards nurturing sustainable growth by improving the business climate, strengthening governance, fighting corruption, streamlining regulation, deepening capital markets, as well as increasing entrepreneurship and competitiveness.
The Chair's Statement from the IMFC Meeting is available, which summarises the main discussions, including the current state of the global economy, the policy direction that needs to be taken along with developments on various issues currently of concern to the IMF.
Jakarta, 18th October 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
[1] Indonesia is representing the Southeast Asia Voting Group (SEAVG) under the auspices of International Monetary and Financial Committee (IMFC) membership in 2025. The IMFC serves to provide guidance and advise the IMF Board of Governors on matters concerning the management and effective functioning of the international monetary and financial system. The Committee is made up of 25 members, consisting of central bank governors and finance ministers of IMF member countries.
