KSSK Declares Financial System Stability Is Maintained, Sri Mulyani: This Is In The Midst Of Increasing Cases Of The COVID-19 Delta Variant

Minister of Finance Sri Mulyani Indrawati. (Photo: Doc. Setkab)

JAKARTA - The Financial System Stability Committee (KSSK) consisting of the Ministry of Finance, Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation stated that the national financial situation at a macro level is in a stable and well-maintained situation.

This was confirmed by the Minister of Finance (Menkeu) Sri Mulyani who also serves as the Chair of the KSSK.

“Financial system stability for the second quarter of 2021 is in a normal condition amid increasing cases of the COVID-19 delta variant. KSSK agreed on a joint commitment to continue strengthening synergies in maintaining financial system stability and continuing to maintain the momentum of economic recovery," he said at a press conference on Friday, August 6.

According to the Minister of Finance, the improvement in the global economy, mainly supported by the United States (US) and China, has had sufficient influence on domestic conditions.

“US economic realization in the second quarter of this year reached 12 percent year-on-year. Meanwhile, China's economy recorded a positive growth of 7.9 percent," he said.

The Minister of Finance continued, the increased activity of the two world economic giants had an impact on rising commodity prices, and Indonesia as one of the exporting countries also enjoyed this situation.

"Therefore, the prospect of the national economy as well as the stability of the financial system will continue to be influenced by global conditions," he said.

As previously reported, Indonesia in the second quarter of 2021 experienced quite good economic growth with a notch 7.07 percent year-on-year (yoy).

When compared to the previous quarter, namely the first quarter of 2021 (quarter-to-quarter/qtq), the economy is known to have increased by 3.31 percent.

Meanwhile, economic growth throughout this year or in the first semester of 2021 (January-June) is 3.10 percent compared to the first semester of 2020.

"The momentum for strengthening global economic performance and the government's countercyclical policies as well as accommodative monetary policy in Indonesia have been able to encourage the continued direction of the national economic recovery," he said.

"So there are indeed global economic factors that contribute, fiscal and non-fiscal policies from the government, as well as monetary policies from Bank Indonesia, OJK and LPS," closed the Minister of Finance Sri Mulyani.