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🇮🇩 Indonesia /Economy & Trade

Indonesia's Financial Sector Stable Amid Global Volatility

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesia's financial sector remained stable in the second quarter of 2026 despite intensified external pressures from geopolitical conflicts and market volatility.
  • The domestic economy demonstrated resilience with solid economic growth and stable public purchasing power, supported by the State Budget.
  • The Financial System Stability Committee (KSSK) is committed to policy synergy to maintain growth momentum, projecting 5.6-6.0 percent economic growth for 2026.

Indonesia's financial sector demonstrated stability throughout the second quarter of 2026, even as the global landscape presented significant challenges. Finance Minister Purbaya Yudhi Sadewa announced this assessment following the third periodic meeting of the Financial System Stability Committee (KSSK) on Monday. The period was marked by intensified external pressures stemming from escalating geopolitical conflicts, surging energy prices, global financial market volatility, and exchange rate fluctuations.

Nevertheless, the domestic economy continues to demonstrate resilience, reflected in solid economic growth and a stable financial sector.

— Purbaya Yudhi SadewaDescribing Indonesia's economic performance amidst global challenges.

Despite these global headwinds, the minister highlighted the resilience of the domestic economy. This resilience was evident in solid economic growth figures and a stable financial sector. He further noted that public purchasing power remained robust, a stability largely attributed to the State Budget's role as a crucial shock absorber. The KSSK, comprising the Minister of Finance, the Governor of Bank Indonesia, and the chairs of the Financial Services Authority (OJK) and the Indonesia Deposit Insurance Corporation (LPS), remains vigilant about external risks.

The committee is committed to conducting forward-looking assessments of the current economic and financial sector performance. Purbaya projects that Indonesia's economy will continue on a strong trajectory in the second quarter of 2026, navigating global economic challenges effectively. The collective policy synergy among KSSK member institutions is expected to maintain the momentum of growth.

external risks to macroeconomic and financial system stability require continued vigilance.

— Purbaya Yudhi SadewaAcknowledging the need for ongoing monitoring of global economic factors.

Looking ahead, Purbaya stated that economic growth in 2026 is projected to range between 5.6 percent and 6.0 percent year-on-year. This optimistic outlook underscores the government's confidence in Indonesia's economic management and its ability to withstand external shocks while fostering continued expansion.

Through this policy synergy, economic growth in 2026 is projected to range between 5.6 percent and 6.0 percent year-on-year.

— Purbaya Yudhi SadewaProviding the economic growth forecast for 2026.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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