Indonesia’s financial system remains stable despite global turmoil

Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati pointed to Indonesia's financial system remaining under control in the fourth quarter of 2019 despite the global economic turmoil and problems faced by the country's financial service companies.

"The Financial System Stability Committee (KSSK) has constantly monitored the potential risks of the global economy as well as the domestic ones," Indrawati, concurrently the chairperson of KSSK, noted during a press conference here on Wednesday.

The committee held a regular meeting on Monday (Jan 20), with the attendees comprising its members: Governor of Bank Indonesia (BI) Perry Warjiyo, Chairman of the Financial Services Authority (OJK) Wimboh Santoso, and Chairman of the Deposit Insurance Corporation (LPS) Halim Alamsyah.

Indrawati called to closely monitor Brexit that has geopolitical consequences.

She lauded the trade deal reached recently between the United States and China, as it lowered uncertainly and risks in the global financial market.

The developments also boosted foreign capital inflow into developing countries, including Indonesia.

Meanwhile, on the domestic front, the Indonesian economy has remained robust, with maintained economic growth backed by household consumption and investment, particularly in the construction sector.

"Exports are starting to increase although non-construction investment performance still requires attention," she stated.

Indrawati made assurance of steps being taken in a coordinated and comprehensive manner to handle problems impacting several domestic financial service institutions.

Hence, the KSSK will intensify coordination of both monetary fiscal and micro-prudential banking policies to maintain stability of the Indonesian financial system and also to sustain the momentum of Indonesia's economic growth.

Source: ANTARA News

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