In the midst of global pressure, OJK ensures the financial sector is stable.
JAKARTA - The Financial Services Authority (OJK) stated that the stability of the national financial services sector is still maintained, this is based on the latest release of global economic data, the general economic conditions of the world show an improvement trend, although China's economic growth is still below estimates.
Chairman of the OJK Board of Commissioners Mahendra Siregar said that global manufacturing activity is still in the expansion phase, albeit with a more moderate growth rate.
"For 2026, multilateral institutions estimate that global economic growth will continue to slow down and be below pre-pandemic growth rates as fiscal risks increase in a number of major countries," Mahendra said at a press conference on the results of the December 2025 Monthly Board of Commissioners (RDK) Meeting, Friday, January 9.
Mahendra explained that economic performance in the United States is still relatively strong with Gross Domestic Product (GDP) in the third quarter of 2025 recorded to have grown by 4.3 percent, higher than the previous quarter and exceeding market expectations.
However, he added that the US labor market is beginning to show signs of slowing down, namely that inflation in November 2025 fell to 2.7 percent, while core inflation was recorded as declining to 2.6 percent. On the other hand, China's economy is still facing pressure, especially due to weak household consumption.
In terms of production, Mahendra said China's manufacturing PMI index had again entered the contraction zone, while pressure in the property sector continued.
According to Mahendra, these global conditions, encourage a number of central banks to re-implement more accommodative monetary policies.
Meanwhile, the United States Central Bank (Federal Reserve) and the Bank of England both cut their benchmark interest rates in December 2025.
However, unlike this step, he said the Bank of Japan took the opposite step by raising its policy interest rate to the highest level in 30 years, as inflation pressures in Japan are still quite strong.
"The difference in policy directions from central banks also affects the dynamics of the global financial market. Global stock markets generally move stronger in response to the FFR cut, although there are concerns about the potential for a bubble in technology stocks," he said.
Furthermore, Mahendra added that the increase in interest rates in Japan also contributed to the weakening of the global government bond market, as the carry trade practice that has supported the market ended.
Mahendra said that at the beginning of 2026, market participants also observed the geopolitical developments in Venezuela and the potential impact on political stability and the global financial market.
"In the midst of global dynamics, the domestic economy in December 2025 recorded an increasing core inflation, the manufacturing sector was still expanding, and the external performance was maintained with a trade balance recording a surplus," he concluded.