OJK Boss Says Financial Services Sector Is Stable Until The End Of 2024

JAKARTA - The Financial Services Authority (OJK) revealed that until the end of 2024 the financial services sector was still stable amid the uncertainty of the global and domestic economy.

Chairman of the OJK Board of Commissioners, Mahendra Siregar, said the global economy showed limited recovery with the majority release of data showing countries being below expectations.

However, Mahendra said that global inflation is still quite persistent, pushing the position of global central banks to be more neutral going forward and the majority of central banks have lowered policy interest rates in the last two months.

"In the United States, the economy and labor data grow solidly with inflation that still tends to be sticky. The Fed cut the benchmark interest rate at the December FOMC meeting," he said at the Annual RDK Press Conference (RDKB), Tuesday, January 7.

However, Mahendra said the Fed also gave a signal that it would be high for longer with a Fed Fund Rate cut in 2025 of only 50 bps from the previous 75 bps and also market expectations between 75 to 100 bps.

In addition, Mahendra said the market also continues to pay close attention to policies from President-elect Trump which also affect the increase in financial market volatility.

Meanwhile in China, Mahendra said there was a signal of recovery from the supply side but there was no signal of improvement on the demand side.

From the domestic side, Mahendra said that Indonesia's economic performance was maintained stable with the CPI inflation rate showing 1.55 percent year on year (yoy) with core inflation increasing to 2.26 percent. The trade power surplus also continues and manufacturing PMI continues to improve.

"Based on these conditions, OJK continues to observe the latest developments asking financial service institutions to continue to monitor these risk factors regularly in order to measure the OJK's ability to absorb potential risks," he concluded.