Indonesian financial sector is in a healthy state amid geopolitical uncertainties: regulator
Indonesia's financial sector remains robust, according to the head of the regulatory authority, even in the face of elevated US interest rates and growing geopolitical uncertainties.
Last week, the Indonesian rupiah reached its lowest value since 2020, hovering around 15,900 per US dollar, prompting the government to introduce fiscal incentives to bolster economic growth, according to a report from Channel News Asia.
Financial Services Authority (OJK) chief Mahendra Siregar emphasized that the sector's stability is evident through sufficient market liquidity and a well-maintained risk profile.
"There is growing confidence that our financial sector can effectively withstand 'higher-for-longer' US rates and geopolitical risks," he stated during a press conference, where he shared the results of OJK's monthly meeting held last week to evaluate the financial sector's status.
As of Monday at 3 am GMT (11 am Singapore Time), the rupiah was trading at 15,920 per US dollar, marking a 0.09% increase.
