Indonesia’s Economy Demonstrates Resilience to Global Shocks
The International Monetary Fund (IMF) has completed an extensive analysis of Indonesia's financial sector, incorporating "stress tests" for financial institutions, evaluations of regulatory and supervisory quality, and an assessment of crisis management systems. This comprehensive review is part of a global program that has been completed by over three-quarters of IMF member countries to date.
The IMF's latest assessment concludes that Indonesia's economy and financial sectors are stable and promising. This marks the third evaluation since previous reviews in 2010 and 2017.
The assessment examines various aspects of financial stability, focusing on vulnerabilities, the effectiveness of financial sector regulation and supervision, crisis management, and the security system of the financial sector. It also considers exports, imports, and the overall growth and development of the financial sector.
On August 26, 2024, Erwin Hariono, Assistant Governor of Bank Indonesia, announced the findings: "Overall, the results are encouraging. Indonesia's economy and financial sector are in a healthy state, showing strong and stable growth and considerable resilience to external negative factors."
Experts highlighted Indonesia's commitment to financial discipline, which contributes to favorable macroeconomic indicators within the regulatory and supervisory framework of the banking sector, capital markets, and the insurance industry.
The IMF encourages ongoing improvements in the financial sector’s security and crisis management systems to further enhance Indonesia’s economic development.
Experts also emphasized the importance of strengthening regulatory and supervisory frameworks, adopting a balanced approach to digital and financial technologies, and sustainable financing. Additionally, they stressed the need to monitor and mitigate risks from various sources, including global uncertainties, domestic challenges, and unpredictable climate impacts.
To support these goals, a resolution was adopted under Law No. 4 of 2023 concerning the development and strengthening of the financial sector (UU P2SK), aimed at boosting sustainability.
Erwin Hariono concluded, "Indonesia's achievements are the result of organized collaboration among the Ministry of Finance, Bank Indonesia, the Financial Services Authority (OJK), the Deposit Insurance Corporation (LPS), and other relevant authorities, along with contributions from the financial services sector."
Source: cnbcindonesia.com
