OJK Assesses Financial Services Sector Remains Stable Amid Global Conflicts
Jakarta (ANTARA) - The Financial Services Authority (OJK) assesses that the performance of the financial services sector up to March 2026 remains stable amid global conflicts.
“The OJK Monthly Commissioners’ Meeting held on 1 April 2026 assessed that the stability of the financial services sector remains maintained,” said OJK Chair of the Board of Commissioners Friderica Widyasari Dewi at the March 2026 RDKB Press Conference in Jakarta on Monday.
Friderica, or Kiki as she is familiarly known, explained that the global economy was previously projected to be on a strengthening path before the outbreak of war between Iran and the United States (US) and Israel.
However, with the escalation of geopolitical tensions in the Gulf region, risks to global stability have increased, evident in energy price pressures and volatility in global financial markets.
“The high global uncertainty and energy price pressures also narrow the monetary policy space for global central banks while rekindling expectations of ‘higher for longer’,” said Kiki.
She explained that the US economy shows signs of pressure amid persistent inflation and rising unemployment rates. The Fed is maintaining its policy interest rate with signals of only one rate cut throughout 2026.
“However, following the escalation of the Iran conflict, market expectations have shifted to a scenario of no rate cuts in 2026,” she added.
Meanwhile, China’s economy recorded performance above expectations, driven by improvements in demand and supply sides, as well as support from stimulus in the financial sector. However, China has lowered its growth target in response to ongoing structural challenges and external uncertainties.
Domestically, core inflation in March 2026 experienced a decline. Consumption activity remained strong at the start of the year, reflected in retail sales growth estimated at 6.89% (year-on-year/yoy), as well as solid motor vehicle sales performance.
On the supply side, the manufacturing PMI also remains expansive. Meanwhile, on external resilience, foreign exchange reserves in February 2026 are at an adequate level, and the trade balance continues to record a surplus.
OJK estimates that the escalation of the Middle East conflict has the potential to increase transmission risks to the financial sector through three main channels: financial markets, rising energy prices, and direct channels through trade and investment exposure.
Therefore, OJK encourages financial services institutions (LJK) to conduct further assessments considering the developments in global dynamics.
“OJK encourages financial services institutions to conduct forward-looking further assessments and, of course, strengthen anticipatory steps, including through strengthening risk management, intensive monitoring, and maintaining adequacy of liquidity and capital,” said Kiki.
OJK continues to monitor market movements and coordinates with self-regulatory organisations in taking necessary policy measures.