BNI Boss Warns of VUCA Effects After the high interest period is over, what is it?

Jakarta –

The President Director of PT Bank Negara Indonesia (Persero) Tbk or BNI, Royke Tumilaar said that the COVID-19 pandemic and the era of high interest rates is over. Nevertheless, he warned that the global economy will continue to face VUCA conditions in the future (volatility, uncertainty, complexityand ambiguity).

This abbreviation describes the global conditions that are felt at the moment, where changes are happening very quickly, difficult to predict, influenced by many factors and reality is very subjective.

“Although the pandemic and the era of high interest rates have ended, the global economy is still facing a VUCA or instability, uncertainty, complexity, and ambiguity“, said Royke at the BNI Investor Daily Conference at the Jakarta Convention Center (JCC), Tuesday (8/10/2024).

Royke believes that geopolitical risks remain high. In addition, the International Monetary Fund (IMF) and the World Bank (World Bank) believe that the average global economic growth will be lower than the period before the COVID-19 pandemic.

“At the same time, the world must embrace megatrends such as digitization, climate change, inclusive and sustainable economic challenges,” he said.

Among these issues, according to Royke, Indonesia has a strong economic base supported by good political stability. Although what has been achieved so far is not enough to introduce Indonesia Gold in 2045.

“In 2024, Indonesia will register the second highest economic growth among the G20 countries after India, fiscal discipline is still maintained, as reflected in the government debt to GDP that will reach 39.4% , lower than the average of other developing countries. monetary policy and “Policy coordination is evident from improving macro stability going into the second semester,” he explained.

Royke said there are still structural challenges in the medium term that need to be addressed, such as creating added value in the established economic sector, education reform, improving the quality of human resources (HR), making the best use of place of the manufacturing industry. , and creating more inclusive and sustainable economic growth.

“BNI will always be proactive in capitalizing on this year’s positive economic growth trend and we will make the most of the 2024 BNI Investor Daily Conference to explain BNI’s role in the midst of pre- challenges facing Indonesia, as well as supporting various government programs. in achieving sustainable economic growth,” he concluded.

(aid/ara)