Indonesia’s Fiscal and Financial Stability Holds Amid Geopolitical Strains
- 04 Agt 2026 10:32 WIB
- Voice of Indonesia
Key Points
- The fiscal, monetary, and financial sector conditions in Indonesia during the second quarter of 2026 remained stable amid escalating geopolitical conflicts.
- Financial system stability has been maintained thanks to close coordination and policy synchronization across authorities.
RRI.CO.ID, Jakarta – Indonesia’s fiscal, monetary, and financial sectors remained stable in the second quarter of 2026 despite rising geopolitical tensions. This was the conclusion of the Financial System Stability Committee (KSSK) following its routine quarterly assessment.
“Financial system stability is maintained thanks to close coordination and strong policy synergy among authorities,” said KSSK Chair and Finance Minister Purbaya Yudhi Sadewa during a press briefing on Monday, August 3, 2026, at the Deposit Insurance Corporation (LPS) office in Jakarta’s SCBD district.
Minister Purbaya noted that Q2 faced significant pressures from escalating global conflicts. “Energy prices rose, global financial markets became vulnerable, exchange rates weakened, and foreign capital flowed out,” he explained.
Even so, Indonesia’s domestic economy proved resilient, reflected in solid growth and a stable financial sector. Purbaya cautioned, however, that external risks to macroeconomic and financial stability remain. “We must stay vigilant to preserve momentum for stronger economic growth,” he said.
The KSSK comprises the Finance Minister, the Acting Governor of Bank Indonesia, the Chair of the Financial Services Authority (OJK), and the Chair of the Deposit Insurance Corporation (LPS).
“We will continue to monitor and conduct forward‑looking assessments of economic and financial sector performance,” Purbaya stressed. He added that the committee will pursue coordinated mitigation measures and support the real sector to drive growth.
“KSSK will also carry out the mandate of the Financial Sector Development and Strengthening Law (UU P2SK), as amended by Law No. 4/2026,” he concluded. (Gusti Panji)
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