Economist: Domestic Market Financial Stability Will Remain Maintained Until The End Of 2024

JAKARTA - Bank Mandiri Senior Economist Reny Eka Putri said domestic financial market stability will be maintained until the end of 2024 supported by solid economic fundamentals.

"The stability of the domestic market is expected to be maintained due to solid economic fundamentals and continued capital inflows that have re-entered the domestic market in line with the certainty of cutting the Fed interest rate," Reny said, quoted from Antara, Wednesday, September 4.

The economic fundamentals include, among others, the Indonesian economy which recorded growth amid global uncertainty, which was 5.08 percent in the first semester of 2024, controlled inflation, and a trade balance surplus.

Based on data from the Central Statistics Agency (BPS), the Consumer Price Index (IHK) in August 2024 experienced deflation of 0.03 month to month (mtm), so that on an annual basis it was relatively stable at 2.12 percent year on year (yoy) from the previous month's realization of 2.13 percent (yoy).

Indonesia's trade balance has also continued to experience a surplus of up to 50 consecutive months since May 2020, with a profit value in the June 2024 period of 2.39 billion US dollars.

According to Reny, one of the risk factors that must be anticipated comes from the development of geopoliticals and the general election (election) of the United States (US).

To maintain rupiah stability, Bank Indonesia (BI) will continue its policy of triple intervention and auction of Rupiah BI Securities (SRBI) which are still in demand by local and foreign investors.

The BI Board of Governors' Meeting (RDG) on August 20-21, 2024 decided to keep the BI-Rate at the level of 6.25 percent, in line with the focus of a pro-stable monetary policy, namely strengthening the stabilization of the rupiah exchange rate and ensuring inflation remains under control in the 2.5 plus minus one percent target in 2024 and 2025.