OJK Boss Values National Financial Services Sector Is Still Stable Amid Global Uncertainty

Chairman of the OJK DK Mahendra Siregar (Photo: screenshot by Aris Nurjani/VOI)

JAKARTA - Chairman of the Board of Commissioners (DK) of the Financial Services Authority (OJK) Mahendra Siregar assessed that the national financial services sector is still stable amid global uncertainty.

"The financial services sector is stable, supported by a strong level of capital and adequate liquidity amid global uncertainty due to the high geopolitical tension, the potential for widespread trade war and global economic performance which is still below expectations," he said at a press conference on the results of the OJK Board of Commissioners Meeting in May 2024, Monday, June 10.

In addition, Mahendra said the tension of the trade war had increased again due to the increase in US rates and several Latin American countries for products from China, both green technology and steel products.

Meanwhile in the United States, inflationary pressures have eased again amid labor market moderation and the performance of the real sector, prompting a reduction in pressure on global financial markets.

Meanwhile, the monetary authority in Europe is expected to be more accommodative to boost the weak economy amid the inflationary rate that continues to subside.

"In China, in responding to indications that the economy is still weakening, the central bank is taking accommodative steps in line with its government issuing aggressive fiscal incentives financed by the issuance of special long term bonds or long-term government bonds of 1 trillion Chinese yuan or about 138 billion US dollars," he explained.

Mahendra mengatakan pertumbuhan ekonomi domestik di kuartal I 2024 lebih tinggi dari ekspektasi pasar, yang didorong oleh pengeluaran pemerintah dan Lembaga Nonprofit yang Menjadi Rumah Tangga (LNPRT).

According to Mahendra, this is in line with the general election period (election), the policy of increasing salaries and paying holiday allowances (THR) for the state civil apparatus (ASN) or retirees as well as the Ramadan and Eid period.