OJK Boss: The Stability Of The National Financial Services Sector Is 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.

Mahendra said the OJK Board of Commissioners Meeting (RDK) assessed that the stability of the national financial services sector was maintained and resilient with prudential indicators such as adequate capital and liquidity as well as a maintained risk profile amid increasing global economic uncertainty.

"The global economic divergence is still continuing with American economic growth showing resilience amid declining core inflation," he said at the August 2023 RDK Press Conference which was held virtually, Tuesday, September 5.

He continued, the economic resilience increased expectations that the Fed could be more hawkist.

Meanwhile, economic growth in Europe fell again to 0.6 percent yoy in the second quarter in 2023 from 1.1 percent in the previous quarter yoy.

"While core inflation is still high. On the other hand, the momentum for China's economic recovery is thermoderated," Mahendra explained.

He continued, China's economic indicators were recorded under expectations with inflation entering the deflation zone and contracting external performance.

In addition, the pressure on the property sector in China has again increased along with the emergence of problems in several large property infiltrations.

He continued, domestically, Indonesia's economy grew positively in the second quarter of 2023 by 5.17 percent yoy, up from the previous quarter 5.04 percent driven by good household consumption and investment performance.

"It is necessary to observe the weakening indicators of consumer optimism, the downward trend in core inflation and the continued decline in commodity prices which have suppressed Indonesia's external performance," explained Mahendra.

He continued, the dynamics of the economy encourages the weakening of global financial markets in the stock market, debt securities, and exchange rate markets, which are also accompanied by increased market volatility and outflows from the majority of emerging market financial markets including the Indonesian financial market.