Business · Economy · 2 hrs ago
Indonesia’s Financial Sector Stable Despite Global Inflation and Rate Risks
Indonesia’s financial regulator says the financial sector is stable despite global economic pressures.
The Financial Services Authority, known as OJK, reached that assessment at a meeting on 28 October and announced it on 5 November.
Global conflict and rising energy prices are adding to inflation, while central banks are expected to keep interest rates high into 2027.
Higher rates and political instability have also made investors more cautious, and government bond yields in many countries have risen to levels not seen for decades.
Indonesia’s domestic economy showed signs of resilience: manufacturing activity strengthened, and vehicle sales grew, led mainly by electric cars.
The manufacturing index reached 54 in October, its highest level since March 2024, while the economy grew 5.4% in the third quarter compared with a year earlier.
OJK’s assessment covers the financial sector’s current stability; no further action or timetable was announced.
Indonesia’s Financial Services Authority said the country’s financial services sector was stable despite geopolitical conflict, inflationary pressure and expectations of higher global interest rates.
The assessment was made at the authority’s monthly board meeting on 28 October 2026.
Global inflation has been pushed higher by energy prices, while inflation in Japan and the United Kingdom exceeded target ranges, the authority said.
The authority said tighter monetary policies could keep interest rates high through 2027.
Indonesia’s economy grew 5.4% year on year in the third quarter of 2026, and manufacturing activity strengthened.
- Who
- Indonesia’s Financial Services Authority (OJK), led by Friderica Widyasari Dewi.
- What
- OJK assessed Indonesia’s financial services sector as stable amid global risks.
- When
- The assessment was made on 28 October 2026 and announced on 5 November.
- Where
- Indonesia; the announcement was made at an online press conference.
- Why
- OJK said the sector remained stable despite geopolitical conflict, inflationary pressure and expectations of higher global interest rates.
This story does not have two clearly opposing sides.
OJK’s monthly Board of Commissioners meeting assessed the financial services sector as stable.
OJK Chair Friderica Widyasari Dewi announced the assessment at an online press conference.
- OJK assessment
- Financial services sector described as stable
- Board meeting
- 28 October 2026
- Third-quarter economic growth
- 5.4% year on year
- October 2026 manufacturing PMI
- 54, the highest since March 2024
- Global rate outlook
- Rates expected to remain high through 2027
What people are saying
The OJK Monthly Board of Commissioners Meeting on 28 October 2026 assessed the financial services sector as stable amid continuing geopolitical conflict, inflationary pressure, and expectations of rising global interest rates.
Expectations of higher interest rates and waves of global political instability have also increased uncertainty, prompting risk-off sentiment in global financial markets.