Remarks of President of the Republic of Indonesia at the 2024 Financial Services Industry Annual Meeting at the St. Regis’ Ballroom in Jakarta, February 20, 2024

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh.
Good morning,
May peace be upon us all,
Shalom,
Om swastiastu,
Namo Buddhaya,
Greetings of Virtue,

Distinguished Spokesperson of the People’s Consultative Assembly and Heads of State Institutions,
Distinguished Ministers of the Indonesia Onward Cabinet, Governor of Bank Indonesia, and members of the Board of Governor,

Distinguished Head of the Board of Commissioners of the Financial Services Authority (OJK), members of the Commission XI of the House of Representatives, Head of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (IDIC),

Ladies and Gentlemen,

I noticed that many business players are were still waiting for result of the elections. They had to wait and see. Some of them were worried about the political situation heating up ahead of the election.

However, alhamdulillah, the election went smoothly; people flocked to polls. We hope that post-election, there will be bigger flow of investment capital.

As may be aware of, global geopolitics are still not conducive. Wars are happening in Ukraine, in Gaza. But, the most important thing is the political situation of our country. The situation remains steady. It will reassure financial industry players and boost the robust financial industry, supporting inclusive and sustainable economic growth.

I am proud of what Head of the OJK said earlier. He said that the resilience of the financial industry in banking capital reached 27.69 percent, higher than several countries in the region. Bank credit can still grow in double digits at 10.38% (year-on-year), which is already above the level in pre-pandemic period.

The maintained national economic growth at around 5.05 percent, managed inflation at 2.57 percent, foreign exchange reserves at US$145 billion, a trade surplus at around Rp570 trillion, and a surplus current account deficit at 0.16 percent.

I believe that the figures should make us upbeat about Indonesia’s economy in 2024, but we still have to be cautious and vigilant, given the rapidly changing global economy and massive technological disruption.

Earlier, I mentioned that geopolitical condition remains uncertain. We have to learn from past cases, including the crisis in ’98, the Asian Financial Crisis, the 2008 Global Financial Crisis, and also in 2023 when we saw the fall of Silicon Valley Bank. These make all of us to be cautious in safeguarding our financial industry and economy.

We have to ensure our economy remains inclusive and sustainable. As mentioned earlier by Chairperson of the OJK, we must continue strengthening financial inclusion and literacy. I have a report that our financial inclusion rate is at 75 percent and our financial literacy rate is still at 65 percent in 2023.

Another equally important thing is our support for MSMEs through banking and insurance. Banking credit for MSMEs is currently at 19 percent. It requires more initiative, a strategy for an increase in banking credit to MSMEs so that we can see MSMEs grow well.

I would like to extend my appreciation for the improvement of the Indonesian Sustainable Finance Taxonomy launched earlier by Chairperson of the OJK so that green finance initiatives will maintain a balance between economic aspects, environmental aspects, and inclusivity.

Thank you for your dedication and hard work in advancing the financial sector in Indonesia.

Together, let us face challenges and achieve better economic growth.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(AP/EP)