Business · Economy · 2 hrs ago
Indonesia’s Financial System Stayed Stable in Q3 Despite Rising Pressures
Indonesia’s Financial System Stability Committee, which includes the finance minister and financial regulators, said the country’s financial system remained stable in the third quarter of 2026.
But pressure increased in October as geopolitical conflicts pushed up global energy prices and major economies kept interest rates high.
MSCI-related concerns and pressure on the rupiah contributed to capital outflows, especially from Indonesia’s stock market.
Officials said domestic demand, investment, government spending and exports helped support the economy.
The government is forecasting economic growth of 5.4% to 5.5% in 2026, while using subsidies, social assistance and other budget measures to cushion economic shocks.
The committee will keep monitoring risks and coordinate with stakeholders to limit the effects of global pressures.
Indonesia’s Financial System Stability Committee said the country’s financial system remained stable in the third quarter of 2026 despite rising global and domestic pressures.
Finance Minister Suahasil Nazara said pressures increased in October amid geopolitical conflicts, higher energy prices and tight global monetary conditions.
MSCI-related concerns and pressure on the rupiah contributed to capital outflows, particularly from the stock market.
The government expects Indonesia’s economy to grow by 5.4% to 5.5% in 2026.
The committee said it would continue monitoring risks and coordinating with stakeholders.
- Who
- Indonesia’s Financial System Stability Committee (KSSK), including Finance Minister Suahasil Nazara.
- What
- The committee said Indonesia’s financial system remained stable in the third quarter of 2026 despite rising pressures.
- When
- The third quarter of 2026; pressures increased in October. The assessment was discussed on November 3, 2026.
- Where
- Indonesia.
- Why
- Economic resilience and coordinated policy responses helped maintain stability, while geopolitical tensions, higher energy prices, tight global monetary policies and domestic market pressures posed risks.
This story does not have two clearly opposing sides.
The KSSK said Indonesia’s financial system remained stable amid rising global pressures.
The Federal Reserve, European Central Bank and Bank of Japan each raised interest rates by 25 basis points.
Pressures increased amid geopolitical conflicts, higher energy prices, tight global monetary policies and domestic market strains.
Suahasil Nazara discussed the KSSK assessment and the pressures facing Indonesia’s financial system.
- 2026 growth forecast
- 5.4%–5.5%
- Global growth projection
- 3.1% in 2026, according to the IMF’s October 2026 outlook
- Interest-rate increases
- 25 basis points each by the Fed, ECB and BoJ in September 2026
- State revenue
- Rp2,341.5 trillion through the end of Q3 2026
- State spending
- Rp2,660.5 trillion through the end of Q3 2026
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What people are saying
We also see that pressure has increased entering October 2026 along with the escalation of geopolitical conflicts
The KSSK, which consists of the Finance Minister, the Bank Indonesia Governor, the Chair of the OJK Board of Commissioners, and the Chair of the LPS Board of Commissioners, will continue to monitor and conduct forward-looking assessments of developments in the economy and financial sector. We will continue to strengthen cooperation with all stakeholders to anticipate the impact of global risk spillovers
To maintain growth momentum, strengthening policy synergy between the government and BI, as well as collaboration between the government and Danantara through the two arms of the state approach, continues to be reinforced to maintain stability and promote high-value-added growth