KSSK Calls The Indonesian Financial System Guarded In The First Quarter Of 2024

Minister of Finance Sri Mulyani (photo; Antara)

JAKARTA - The Financial System Stability Committee (KSSK) stated that Indonesia's economic stability and financial system will be maintained in the first quarter of 2024.

"The stability of Indonesia's financial system in the first quarter of 2024 is still in a well-maintained condition. Supported by state budget conditions, fiscal policy, monetary policy from Bank Indonesia, and a stable financial sector," said Finance Minister Sri Mulyani Indrawati quoting between.

This statement considers the stability performance of Indonesia's financial system at the beginning of the year which was maintained quite well amidst global economic uncertainty.

This positive performance is supported by a resilient financial system and maintained domestic consumption, especially during the 2024 General Election period and religious holidays.

However, the State Treasurer still warned of geopolitical uncertainty which led to a slowdown in the global economy.

The International Monetary Fund (IMF) itself projects that the global economy will stagnate at the level of 3.2 percent on an annual basis (yoy) for 2024. Meanwhile, the continued increase in US inflation has prompted the US Central Bank or Federal Reserves (The Fed) to delay further cuts in benchmark interest rates.

"This means that a high for longer occurred in the US," said Sri Mulyani.

Furthermore, Sri Mulyani said that KSSK will continue to be committed to strengthening coordination and synergy in maintaining the Indonesian economy.

This is done by increasing awareness of economic risks due to global risks that have the potential to affect the Indonesian economy and financial system.

He projects that Indonesia's economic growth in 2024 will remain above 5 percent.

"This is supported by strong domestic demand, both in terms of household consumption and consumption of LNPRT (Non-Professional Institutions that Serve Households)," he explained.