JAKARTA – The Financial System Stability Committee (KSSK) has reported that Indonesia’s financial system remains stable in the second quarter of 2025, despite facing heightened global uncertainty.
This confirmation comes from the KSSK Coordination Meeting attended by key financial authorities, including the Ministry of Finance, Bank Indonesia, the Financial Services Authority, and the Deposit Insurance Corporation.
Finance Minister Sri Mulyani Indrawati highlighted that the stability of the financial system amidst ongoing global challenges is essential. Key issues affecting global conditions include the tariff policies of the United States and increasing geopolitical tensions. “The financial system stability for the second quarter of 2025 is upheld even as global uncertainty remains pronounced,” she stated during a press conference on July 28, 2025.
Minister Indrawati emphasized the need for vigilance and proactive measures moving forward to sustain this stability. “We will persist in enhancing the coordination and policies among KSSK member institutions to mitigate the potential impacts of global risk factors while promoting economic growth,” she remarked.
Despite the overall stability, ongoing global economic uncertainty is evident, particularly due to China’s response to U.S. tariffs and conflicts in the Middle East, which have contributed to a slowdown in global economic growth. For instance, China’s economic growth decelerated to 5.2 percent year-on-year in the second quarter of 2025, compared to 5.4 percent in the previous quarter.
Other developing nations are also experiencing a similar slowdown, primarily due to falling exports to the United States and a downturn in global trade. However, there is a silver lining; India continues to report robust growth, buoyed by significant foreign investments.
Moreover, the global uncertainty has led investors to favor safer financial assets, gravitating towards investments in Europe, Japan, and gold commodities.
The resilience of Indonesia’s financial system, in light of these global dynamics, reflects a proactive approach by the KSSK and associated institutions to navigate these challenging times, providing a hopeful outlook for the nation’s economic stability.