Firm! OJK Chief to Conduct Stress Tests in Financial Sector to Anticipate Global Turbulence

The Financial Services Authority (OJK) is heightening its alertness to potential global turbulence by conducting stress tests on the financial services sector in Indonesia.

This step follows the lingering uncertainties haunting markets due to the conflict between the United States (US) and Israel with Iran. The ongoing closure of the Strait of Hormuz is also exacerbating global distribution, keeping global oil prices high.

OJK Commissioner Council Chair Friderica Widyasari Dewi stated that the financial sector remains stable. The woman, affectionately known as Kiky, noted that global economic performance continues to face ongoing geopolitical uncertainties despite a ceasefire agreement between the US and Iran.

“The OJK Monthly Commissioner Council Meeting on 30 April 2026 assessed that the stability of the financial services sector remains maintained amid global economic dynamics,” Kiky said during the Monthly Commissioner Council Meeting on Tuesday, 5 May 2026 in Jakarta.

She added that global pressures have also prompted the International Monetary Fund (IMF) to cut its world economic growth projection. In its April 2026 World Economic Outlook report, the IMF lowered the global growth forecast to 3.1 per cent, with increasing stagflation risks.

The US central bank, the Federal Reserve (The Fed), also held its benchmark interest rate at 3.5 per cent to 3.75 per cent in the April 2026 Federal Open Market Committee (FOMC) meeting. The Fed’s hawkish stance comes amid inflationary pressures and economic slowdown in Uncle Sam’s country.

Kiky said OJK will conduct stress tests to anticipate market dynamics amid the continued closure of the Strait of Hormuz and potential ceasefire failures. This effort involves intensive monitoring with various scenarios to ensure the industry’s resilience against potential shocks.

“The uncertainty in resolving the Iran conflict with the United States and Israel, which has caused fluctuations in financial markets, has led OJK to conduct intensive monitoring to ensure the resilience of the financial services sector, including stress tests with various scenarios on the financial services industry, as well as strengthening supervision of financial services institutions,” Friderica explained.

Amid global pressures and the fading optimism of international financial institutions, Indonesia’s economy shows resilience. The latest data from the Central Statistics Agency (BPS) records that Indonesia’s economy grew by 5.61 per cent in the first quarter of 2026, driven by household consumption and government spending.