Indonesia's Financial Sector Shows Resilience Amid Global Volatility: KSSK

Indonesia's Financial System Stability Committee (KSSK) affirmed the resilience of the nation's financial sector amidst global economic uncertainties. The committee emphasized policy coordination to control inflation and maintain economic growth. The KSSK comprises relevant authorities, including Bank Indonesia (BI), the Financial Services Authority (OJK), and the Indonesia Deposit Insurance Corporation (LPS). During the meeting, the potential impact of external factors such as global economic slowdown, geopolitical tensions, and inflationary pressures on the Indonesian economy was discussed. However, participants concluded that Indonesia's financial system is capable of addressing these challenges due to its sound capital levels, good liquidity, and effective risk management. Specifically, it was noted that the banking sector continues to maintain high capital adequacy ratios, and the non-performing loan (NPL) ratio remains at a manageable level. The meeting supported Bank Indonesia's firm stance in controlling inflation within its target range and maintaining purchasing power. Simultaneously, the government's efforts to stimulate economic growth and attract investment were also appreciated. The KSSK agreed on the necessity of continuous coordination between monetary and fiscal policies to maintain macroeconomic stability and ensure sustainable economic growth. Furthermore, the meeting also discussed areas contributing to the long-term health and development of Indonesia's financial sector, such as expanding financial inclusion, developing the digital economy, and promoting sustainable finance.