The Financial System Stability Committee (KSSK), comprising the Minister of Finance, the Governor of Bank Indonesia, the Chair of the Financial Services Authority, and the Chair of the Indonesia Deposit Insurance Corporation, published its Q2 2025 assessment of financial system stability after its third regular meeting of 2025 on 25 July 2025. It concluded that financial system stability remained maintained amid elevated global uncertainty and agreed to reinforce inter-agency policy coordination and vigilance to preserve stability while supporting economic growth. KSSK projected Indonesia’s economy to grow around 5.0% in 2025 and noted the US reciprocal tariff agreement for Indonesia at 19% as supportive for labour-intensive exports, while flagging risks including continued contraction in manufacturing (June 2025 PMI 46.9). Consumer price inflation was 1.87% year on year in June and was expected to remain within the 2.5±1% target band in 2025–2026; the rupiah strengthened to IDR16,235 per USD at 30 June from IDR16,865 in April and was at IDR16,315 on 25 July, with reserves at USD152.6 billion at end-June. Bank Indonesia’s response included BI-Rate cuts of 25 basis points in May and July to 5.25%, FX interventions including offshore non-deliverable forwards, government securities purchases totalling IDR147.59 trillion in 2025 to 25 July, and macroprudential easing and incentives including raising Macroprudential Liquidity Incentives to up to 5% of third-party funds and reducing macroprudential liquidity buffer ratios from 1 June. OJK data showed bank credit grew 7.77% year on year in June to IDR8,059.79 trillion with gross non-performing loans of 2.22% and a capital adequacy ratio of 25.79%; outstanding peer-to-peer lending rose 25.06% year on year to IDR83.52 trillion with TWP90 of 2.85%, and crypto-asset trading had 23 licensed entities and IDR32.31 trillion in June transactions. The Indonesia Deposit Insurance Corporation reported 99.94% of commercial-bank accounts were fully covered up to IDR2 billion and set the rupiah deposit guarantee rate at 4.00% for commercial banks and 6.50% for rural banks from 1 June to 30 September 2025. KSSK members reiterated their joint plan to complete implementing regulations under the Financial Sector Development and Strengthening Law (P2SK) with industry and the public, and the committee scheduled its next regular meeting for October 2025.

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