The Indonesia Ministry of Finance reported that the Financial System Stability Committee assessed Indonesia's financial system as remaining in good condition in the first half of 2026, despite a global economic slowdown, higher geopolitical tensions and elevated financial market volatility. The assessment was presented by Finance Minister Purbaya Yudhi Sadewa, who chairs the committee, during a working meeting with Commission XI of the House of Representatives. He attributed the outcome to coordination across fiscal, monetary, financial services and deposit insurance policies. The update highlighted the state budget's role as a shock absorber for the domestic economy. State revenue rose 21.4 percent year on year and state spending increased 17.8 percent year on year in the first half, while the primary balance remained in surplus and the full-year fiscal deficit was projected at 2.85 percent of GDP. Supporting measures included placing state funds in commercial banks, maintaining fuel and food price stability, and providing business support through transport discounts and import incentives. The budget was also directed to priority programs including free nutritious meals, community schools, health facility improvements and disaster response. Looking ahead, the committee said it will continue to strengthen coordination among the Ministry of Finance, Bank Indonesia, the Financial Services Authority and the Indonesia Deposit Insurance Corporation.

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