Indonesia's Ministry of Finance published the Financial System Stability Committee (KSSK) assessment that Indonesia’s fiscal, monetary and financial sector conditions remained stable through 2025 despite heightened global uncertainty, supported by strong cross-authority policy coordination. It also set out that KSSK will keep closely monitoring developments and conducting forward-looking assessments, alongside coordinated mitigation efforts. The update noted a pickup in global financial market volatility in January 2026 amid trade and geopolitical tensions, and cited a 50 basis point cut in the Federal Funds Rate in Q4 2025 to 3.50–3.75 percent. Against this backdrop, Indonesia’s growth in Q4 2025 was expected to improve, with full-year 2025 growth projected at around 5.2 percent and 2026 growth at 5.4 percent, supported by domestic demand and policy synergies. On the fiscal side, the state budget (APBN) was described as acting as a shock absorber, with 2025 spending recorded at IDR 3,491.4 trillion (95.3 percent of the budget), revenue at IDR 2,756.3 trillion (91.7 percent of target), and a deficit of IDR 695.1 trillion (2.92 percent of GDP), alongside continued coordination with Bank Indonesia (BI), the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS). Following its first regular meeting of 2026 on 23 January, KSSK will continue monitoring and forward-looking assessment of economic and financial sector conditions and pursue coordinated mitigation across member institutions and with other ministries and agencies.

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