OJK Chairman Mahendra Siregar Openly Talks Global Economy: Stagflation Is Inevitable

Chairman of the OJK Board of Commissioners Mehendra Siregar (Photo: screenshot of OJK Youtube)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that the condition of slowing economic growth accompanied by the phenomenon of high inflation (stagflation) in various countries of the world needed special attention.

"Of course, we have to anticipate and overcome the risks from the impact of the global economic downturn accompanied by rising prices that have brought the world into stagflation," he said when holding the OJK's first press conference for the 2022-2027 period on Wednesday, July 20.

According to Mahendra, this situation is not impossible to have a negative impact on the economy in Indonesia.

“(Tackling the impact of stagflation) We will not do it alone but will do it in synergy with the government, Bank Indonesia, and LPS within the framework of the KSSK (Financial System Stability Committee). The condition of stagflation in the world is inevitable," he said.

Furthermore, Mahendra said that OJK would improve supervision of the conditions of each financial services industry as well as in an integrated manner, as well as in close coordination.

"Indonesia's current condition is expected to help avoid the biggest risk of stagflation," he continued.

Therefore, Mahendra stated that OJK would strengthen its position as the government's strategic partner in regulating and supervising the financial services industry for a faster and more sustainable economic movement.

“We will proactively strengthen our position as a good director, driver, and partner for the industry. OJK will also continue to strengthen its role in protecting consumers and the public," he said.