Indonesia's Financial Sector Remains Resilient, OJK Chief Remains Vigilant on Global Uncertainty Risks

Jakarta, VIVA – The Chair of the Financial Services Authority (OJK) Board of Commissioners, Friderica Widyasari Dewi, known as Kiki, has confirmed that the national financial services sector remains sound, amid global uncertainty triggered by geopolitical escalation and the trade policies of the United States (US).

However, based on the results of the OJK’s Monthly Board of Commissioners Meeting (RDKB) on 29 July 2026, Kiki stressed that the OJK will remain vigilant against various risks behind the renewed escalation of geopolitical tensions in the Middle East, following the collapse of the ceasefire between Iran and the US.

“Nevertheless, the OJK’s RDKB on 29 July 2026 assessed that the stability of the financial services sector remains sound, amid rising uncertainty in the global economy and financial markets,” Kiki said during the OJK RDKB press teleconference on Tuesday, 4 August 2026.

Kiki acknowledged that this vigilance stems from the Middle East geopolitical escalation, which has contributed to a surge in world energy prices and increased risk premiums in global financial markets.

Meanwhile, the International Monetary Fund (IMF) has revised down its projection for global economic growth to around 3 per cent. This is a consequence of the prolonged impact of such global uncertainty.

Even so, Kiki believes global economic growth still has the potential to expand, supported by rapid investment in the artificial intelligence (AI) sector. On the other hand, the US has begun implementing new tariff policies on around 60 trading partner countries, replacing the temporary tariff policy that ended some time ago.

Kiki acknowledged that this has become one aspect with the potential to add pressure on international trade. Moreover, the surge in global energy prices has also driven up risk premiums, which are expected to continue as long as geopolitical tensions persist with no clear end in sight.

In addition, Kiki said the OJK continues to monitor several still-slowing global economic indicators. This includes limited movement in the manufacturing sector across various countries.

Meanwhile, inflation in China has been observed to be easing, although the country’s economic growth has been recorded at its lowest in several recent periods. This is compounded by weakening domestic consumption and private investment, leaving exports as the main pillar supporting China’s economic growth.