Indonesia’s Ministry of Finance published remarks by Minister of Finance Sri Mulyani Indrawati from a press conference on the Financial System Stability Committee’s (KSSK) regular meeting, stating that Indonesia’s financial system stability remained maintained in the second quarter of 2025 despite elevated global uncertainty. The update linked global uncertainty mainly to dynamics around US reciprocal tariff negotiations and escalating geopolitical and military tensions, citing the April 2025 US tariff announcement and China’s retaliation, as well as rising tensions in the Middle East in June 2025 alongside slowing growth in the United States, Europe and Japan. KSSK is responding with heightened vigilance and continued cross-agency policy coordination, spanning fiscal policy at the Ministry of Finance, monetary, macroprudential and payment system policy at Bank Indonesia, financial sector policy, supervision and regulation at OJK, and coordination with LPS. The remarks also pointed to capital flows shifting from the United States into perceived safe assets in Europe and Japan and into gold, and referenced downward revisions to 2025 global growth forecasts by the World Bank (to 2.9% on PPP weights from 3.2%) and the OECD (to 2.9% from 3.1%). KSSK also maintained that Indonesia’s second-quarter growth would remain supported by positive consumption and purchasing power and resilient business activity, with the state budget playing a countercyclical role and improving distribution and market effectiveness.

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