The national financial system stability is normal in the second quarter of 2021 as economic recovery continues amid the pandemic, Finance Minister Sri Mulyani Indrawati has said.

The stability was affected by the positive trend in the global economy as the United States and China experienced 12 percent and 7.9 percent year-on-year economic growth, respectively, she informed.

“The growth led to the rise in global trade transactions and commodity prices,” she said at a press conference here on Friday.

The growth was also in line with the increasing manufacturing purchasing managers’ index (PMIs) and relatively high inflation, she noted. It was also indicated by the decline in the unemployment rate to almost the same level as the pre-pandemic period, she added. The minister, who is also head of the Financial System Stability Committee, said that Indonesia’s economic growth in the second quarter of 2021 also showed the financial system’s normal stability. Indonesia attained 7.07 percent year-on-year economic growth, continuing its rise from the first quarter, Indrawati noted.

This improvement implies that the government’s economic recovery programs went well, she said. It also proved the effectiveness of the state spending realization, which stood at 9.38 percent year on year in the second semester of 2021, she added.

“The Financial System Stability Committee has agreed on a joint commitment to maintain our firm synergy in order to sustain the financial system stability as well as the economic recovery momentum,” the minister informed.

The normal stability of the financial system was generated from the accommodative countercyclical policies conducted by the government, both in the monetary and financial sectors, she explained. The policies also aimed to encourage the sustainability of national economic recovery, she added.

Source: Antara News