At a press conference organized by the Financial System Stability Committee (KSSK) here on Monday, she informed that global economic uncertainty remained high in the second quarter due to the reciprocal tariff policy of the United States and geopolitical tensions in the Middle East.
As a result, growth was projected to slow globally, including in major economies such as the US, Europe, and Japan.
However, the KSSK was optimistic that Indonesia would manage to sustain economic growth in the second quarter, tracking positive community consumption and purchasing power.
Business activity was also expected to remain resilient with the support of the State Budget, which acts as a countercyclical tool and improves market effectiveness and distribution.
The government also provided social assistance for communities and sectors considered vulnerable.
“We at the KSSK will continue to bolster coordination and synergy so that inter-institutional policies can ensure financial system stability while also encouraging economic growth,” the minister said.
Indrawati then noted Indonesia’s successful negotiations with the US, which have resulted in a reduction in the US import tariff from 32 percent to 19 percent. This is expected to boost the performance of labor-intensive industries, such as textile and footwear, she said.
The KSSK consists of the Minister of Finance, the Governor of Bank Indonesia (BI), head of the board of commissioners of the Financial Services Authority (OJK), and head of the board of commissioners of the Indonesia Deposit Insurance Corporation (LPS).
Translator: Imamatul Silfia, Raka Adji
Editor: Aditya Eko Sigit Wicaksono
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