OJK Reveals Three Channels of Risk Impact from Global Conflicts
JAKARTA - The Financial Services Authority (OJK) has spotlighted the rising global uncertainty that is triggering new risks to the financial services sector. These risks are assessed to flow through three main channels.
OJK Commissioner Council Chair Friderica Widyasari Dewi stated that the first channel stems from financial markets. Global volatility is increasing in tandem with the escalation of conflicts involving Iran, Israel, and the United States.
The second channel arises from the surge in energy prices. The spike in oil prices is narrowing monetary policy space and pressuring global economic stability.
The third channel relates to trade and investment pathways. Disruptions to supply chains and shifts in capital flows are seen as potentially impacting the domestic financial sector.
“OJK continues to monitor market movements and coordinates with self-regulatory organisations in taking necessary policy steps,” Friderica said during a press conference for the Monthly Commissioner Council Meeting (RDKB) on Monday (6/4/2026).
“The high global uncertainty and energy price pressures are also narrowing monetary policy space for global central banks, while reigniting expectations of ‘higher for longer’,” Friderica added.
Pressure is evident in the US economy. Inflation remains persistently high, and unemployment rates are rising. Market expectations have shifted from planned interest rate cuts to a scenario with no reductions throughout 2026.
A different situation prevails in China. Economic performance has exceeded forecasts, driven by improved demand and financial sector stimulus. However, China is still lowering its growth targets due to structural challenges.
Although domestic conditions are relatively strong, OJK urges financial services institutions to strengthen risk mitigation. Assessments are conducted on a forward-looking basis. Liquidity and capitalisation must be maintained to face potential ongoing pressures.
“The Monthly Commissioner Council Meeting of the Financial Services Authority was held on 1 April 2026, assessing that stability in the financial services sector remains maintained,” Friderica stated.