Chairperson of the board of commissioners of the OJK, Mahendra Siregar, informed that the response of the market to the latest tariff news was better compared to the volatility that followed the US President’s tariff announcement earlier this year.
“This time, (the impact of the policy is) relatively minimal, as the market is likely still assessing the situation, while anticipating the development of the issue until August 1 (2025),” he explained here on Tuesday.
He said that the OJK is continuing to closely monitor global economic developments and their potential impact on the national financial system, while preparing mitigation strategies.
In response to the significant volatility experienced in March and April 2025 due to the US tariff policy, the OJK and the Indonesia Stock Exchange (IDX) introduced a series of anticipatory and mitigation measures, many of which remain in effect.
The measures include ongoing permission for share buybacks by listed companies without shareholder approval and the suspension of short-selling by brokerage firms.
They further comprise the permanent application of the asymmetric auto-rejection feature on IDX to prevent irrational price fluctuations.
“It is expected that these measures will continue to maintain investor confidence, support the optimal functioning of market intermediation, and ensure that the stability of the financial system remains well-preserved even in the face of external challenges,” Mahendra said.
The OJK has also instructed all financial institutions to conduct regular risk assessments and stress tests on capital adequacy and liquidity, particularly in sectors made vulnerable by the US tariff policy.
President Trump has decided to keep the 32-percent import tariff on Indonesian goods, first announced in April, unchanged despite ongoing talks between the two countries.
On Monday, President Trump sent letters to the leaders of Indonesia, Bangladesh, Cambodia, and Thailand, formally notifying them of the tariffs.
The letter confirmed that, starting August 1, the United States will impose a 32-percent tariff on Indonesian goods.
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Reporter: Rizka Khaerunnisa, Uyu Liman
Editor: Azis Kurmala
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