President Jokowi Receives KSSK’s Report on Global Economic Developments

Minister of Finance Sri Mulyani, Governor of Bank Indonesia Perry Warjiyo, Chairperson of the Board of Commissioners of the Financial Services Authority Mahendra, and Chairperson of the Board of Commissioners of the Deposit Insurance Agency (LPS) Yudhi Purbaya deliver press statement at the Presidential Palace compound in Jakarta, Monday (10/23). (Photo by: BPMI)

President Joko “Jokowi” Widodo received members of the Financial System Stability Committee (KSSK) at the Merdeka Palace, Jakarta, on Monday (10/23).

In a statement after the meeting, Minister of Finance Sri Mulyani said that KSSK members had reported to the President regarding developments of the current situation of the global economy which must be anticipated in the upcoming months and years.

“I, together with the Governor of central bank, Bank Indonesia (BI), Mr. Perry Warjiyo, Chairperson of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra, and Chairperson of the Board of Commissioners of the Deposit Insurance Agency (LPS) Yudhi Purbaya, submit a report to the President regarding our (Minister of Finance and Governor of Bank Indonesia) attendance at the Annual Meeting of the IMF-World Bank and G20 Ministry of Finance of the Central Bank, which was held in Marrakesh. We provide an update to the President on the current situation and the situation that is continuing to develop,” said Sri.

Apart from that, KSSK members also reported to the President that coordination between fiscal and monetary policies will continue to be carried out to face challenges in maintaining economic stability. Moreover, according to her, the current dynamics of the global economy have created impacts that must be anticipated.

“Therefore, fiscal and monetary policies will continue to be coordinated in a synchronous and harmonious manner. Certainly, we have to make adjustments to each other. We will use instruments that are already available on the market, as well as policies in communication. We will continue to carry it out jointly between BI and Ministry of Finance,” Sri said.

Furthermore, in the financial sector, Sri said that she will continue to monitor stability starting from finance, banking, capital markets and non-bank financial institutions. This also includes the movement of foreign capital flows both in and out, she added.

“KSSK will gather at the end of this month according to the regular meeting schedule. Later we will continue to monitor various financial sectors carefully and carry out various stress tests to ensure that our financial sector is good,” she explained, adding that the KSSK has also prepared a number of steps to ensure that the real sector is maintained and the purchasing power of people in the lower middle class can still be supported through instruments that will soon be formulated.

“There will be some adjustments indeed to maintain stability and economic growth and to ensure that the economy can run sustainably,” she said. (BPMI/AIT) (EST/MUR)