OJK Boss: Global Economic Conditions In General Are Weakening

JAKARTA - The Financial Services Authority (OJK) revealed that Indonesia's financial services sector is still stable until July 2024. This condition is supported by a strong level of capital and adequate liquidation.

Chairman of the OJK Board of Commissioners Mahendra Siregar said this was taking place amid global uncertainty due to the increasing tension of trade and geopolitical wars and the normalization of global commodity prices.

Mahendra said the global economy in general seems to be weakened by broad-base thermoderated inflation. This includes the United States.

Dan ekspektasi pasar terhadap penurunan suku bunga kebijakan bank sentral Amerika, FFR (Federal Funds Rate) sebanyak dua atau tiga kali di sisi tahun 2024 ini, jelasnya dalam konferensi pers secara virtual, Senin, 5 Agustus.

Meanwhile in Europe, continued Mahendra, policy indicators at the July 2024 meeting showed that the economy continued to weaken so that European central banks held back interest rates.

"Likewise in China, economic growth has slowed, driven by weakening domestic demand in the property sector, so the Chinese government and central banks continue to issue fiscal and monetary stimulus," he said.

In addition, Mahendra continued, the tension of global geopolitical trade and geopolitical tension was observed to increase in line with the high political dynamics in the United States ahead of the presidential election in November this year.

"As well as the latest developments in the middle east and Ukraine," he explained.

Meanwhile, continued Mahendra, the domestic economic situation was recorded positive and quite stable. Where inflation was also successfully maintained.

For your information, the Central Statistics Agency (BPS) conveyed the latest condition of Indonesia's economy. Where recorded economic growth grew 5.05 percent on an annual basis in the second quarter of 2024.

"In the country, the performance of the national economy is still quite positive and tends to be stable with the level of inflation maintained and the continuation of the trade balance surplus," he explained.

In the midst of the mixed global financial market conditions, Mahendra said he was wary of risk factors that would affect the financial services sector in the future.

"Therefore, the Financial Services Institution should remain vigilant for these risk factors on a regular basis," he said.