OJK Chairman Mahendra Siregar Claims Stability Of The National Financial Services Sector To Be Maintained

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar assessed that the stability of the national financial services sector is maintained and resilients supported by solid capital and adequate liquidity.

"The development of the global economy is still showing the divergence of recovery with the economic growth of the US (United States) much better than the previous expectations, namely in the second quarter of 2023 it recorded a growth of 2.4 percent, compared to the projection of the Fed of 1 percent throughout 2023 and with the inflation rate which also continues to decline," Mahendra said at the July 2023 Monthly Board of Commissioners Meeting, in Jakarta, quoted from Antara, Friday, August 4.

The momentum for economic recovery in China and Europe is currently said to tend to weaken with deflationary pressures starting to appear in China, while inflationary pressures in Europe are still high. However, in general, the performance of the global economy is still better than the initial estimate.

He stated that the International Monetary Fund (IMF) increased its projected global economic growth in 2023 to 2.7 percent from its original projection in April 2023 of 2.6 percent.

"The market estimates that the cycle of increasing policy interest rates in the US has approached at the end of the Fed raising the FFR (Fractional Flow Reserve) by 25 basis points at the FOMC (Federal Open Market Committee) meeting in July 2023. This encourages the strengthening of global financial markets in both the stock market, the debt market, and the exchange rate market, which are also accompanied by inflows to the majority of emerging markets," Mahendra said.

Domestically, he said, the performance of the national economy was observed to be positive, especially in the business world, which can be seen from the increase in the trade balance surplus, increasing the Purchasing Managers Index manufacturing in July 2023 to 53.3 compared to June 2023 by 52.5 percent, as well as increasing the utility of industrial capacity.

However, the potential for increased performance in the household sector and the demand side in general is considered to still need to be encouraged. (This) can be seen from the continued downward trend in inflation, retail sales moderation, and consumer optimism," he also said.