Global Uncertainty Increases, OJK Pede Financial Services Sector Remains Stable

OJK (photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) revealed that the financial services sector remains stable amid increasing geopolitical risks.

Chairman of the OJK Board of Commissioners Mahendra Siregar conveyed that Donald Trump's victory as president of the United States (US) is expected to increase the tension of the trade war. In addition, geopolitical instability in some also increases risks.

"In addition, geopolitical instability in several countries, especially Asia and Europe, as well as the Middle East and specifically in Ukraine also increases the geopolitical risk itself," Mahendra said at the RDK Press Conference, Friday, December 13.

Mahendra emphasized that the performance of the global economy in general is still better than the expectations of the majority of major countries.

According to Mahendra, this was marked by indicators of the US labor market again. On the other hand, China's production sector performance has increased again even though pressure on demand or demand continues, as well as European economic indicators tend to improve.

"This development encourages global central banks to be more careful in loosening their monetary policy, so that policy interest rate terminal expectations increase," he said.

Mahendra said investors tend to withdraw their funds from developing countries or emerging markets, thus encouraging weakening of stocks, bonds and exchange rates.

As for the domestic side, the economic performance was maintained stable with economic growth in the third quarter of 2024 of 4.95 percent and cumulative growth of 5.03 percent.

"So that overall growth in 2024 can be maintained above 5 percent," he added.