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KSSK promises 'vigilance' in anticipating impacts of US-China trade dispute
The leading representatives of the Financial System Stability Committee (KSSK) said that while its latest assessment indicated financial stability, it would keep an eye on the US-China trade tensions and its potential impacts on the Indonesian economy.
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Counting costs: Finance Minister Sri Mulyani (second left) shares a light moment with (from left) Financial Services Authority board of commissioners chairman Wimboh Santoso, Bank Indonesia Governor Perry Warjiyo and Deposit Insurance Corporation commissioner Destry Damayanti at the close of a press conference in Jakarta on Tuesday, July 30. (Antara/Galih Pradipta )
The prolonged trade spat between the United States and China has shaken the world’s financial markets, disrupted the global supply chain and suppressed economic growth in many countries, including Indonesia.
Finance Minister Sri Mulyani Indrawati said that US-China trade tensions were the primary consideration for regulators when discussing external risks to the domestic economy, adding that the dispute could potentially spill over to other countries that served as hubs for Chinese exports to the US.
“This factor has weakened international trade and dimmed prospects for global economic growth,” Sri Mulyani said on Tuesday, during a press conference in Jakarta that announced the results of the assessment of the Financial System Stability Committee (KSSK) on the national economy.
The KSSK – comprising the Finance Ministry, Bank Indonesia (BI), the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS) – vowed to remain vigilant in monitoring potential threats to Indonesia's financial stability. The committee also stressed assurances that its latest assessment had determined that the financial system remained stable.
It also has pledged to work toward boosting Indonesia's economic growth to achieve this year's 5.3 percent target amid the slowing global economy.
“With maintained stability, all of BI’s policy instruments are directed at supporting and encouraging the economic growth momentum,” BI Governor Perry Warjiyo said during the press conference, adding that the accommodative policies were also expected to increase loan disbursements.
