Jakarta. Indonesia's financial sector remains resilient despite mounting global uncertainty and signs of a domestic economic slowdown, the Financial Services Authority (OJK) said on Tuesday after its board concluded that the country's financial system remains stable.

OJK Chairwoman Friderica Widyasari Dewi said the regulator's Board of Commissioners, during its monthly meeting on July 1, concluded that Indonesia's financial services sector remained resilient despite a more challenging economic backdrop.

"The OJK Board of Commissioners' monthly meeting on July 1, 2026, assessed that the stability of Indonesia's financial services sector remains well maintained," Friderica said at a virtual press conference.

She said global uncertainty remains elevated, although easing geopolitical tensions in the Middle East have reduced pressure on global energy markets.

"This is reflected in oil prices returning close to pre-conflict levels and easing concerns over disruptions to energy supplies. Nevertheless, geopolitical risks still warrant close attention as regional stability remains vulnerable to renewed escalation," Friderica said.

Friderica said the global growth outlook continues to face headwinds from weakening demand, China's economic slowdown, and the prospect of interest rates staying higher for longer, all of which could dampen investor sentiment and risk appetite.

She noted that both the Organisation for Economic Co-operation and Development (OECD) and the World Bank have lowered their 2026 global growth forecasts, with the OECD projecting growth of 2.8% and the World Bank forecasting 2.5%.

At home, OJK said several economic indicators have begun to moderate as inflationary pressures build. Indonesia's annual inflation accelerated to 3.34% in June, while manufacturing slipped back into contraction, with the S&P Global Purchasing Managers' Index (PMI) falling to 46.9 from 50.0 in May, below the 50-point threshold separating expansion from contraction.

Trade performance has also weakened. Indonesia posted a $1.61 billion trade deficit in May, ending a six-year streak of monthly surpluses after the surplus narrowed sharply to just $89.1 million in April. Indonesia's Central Statistics Agency (BPS) attributed the deficit largely to a $3.76 billion oil and gas trade deficit, as oil and gas imports surged 70.78% year-on-year to $4.51 billion amid elevated crude prices.

Friderica also cited foreign exchange reserves among the indicators reflecting softer economic momentum in recent months. However, the latest data from Bank Indonesia showed reserves rebounded to $145.6 billion at the end of June from $144.9 billion in May, driven by higher tax and services revenues despite government external debt repayments and the central bank's rupiah stabilization measures. The reserves were equivalent to 5.5 months of imports, well above the international adequacy standard of around three months. Despite softer macroeconomic indicators, Friderica said the financial services sector remains supported by coordinated fiscal and monetary policies, as reflected in relatively stable stock market performance and continued bank lending growth.

Beyond preserving financial stability, OJK is also strengthening the financial sector's role in supporting sustainable development by promoting the implementation of carbon economic value initiatives and expanding transition financing for businesses pursuing decarbonization.

The regulator has also enhanced its Financial Information Service System (SLIK), with new rules taking effect on July 1. Under the revised framework, lenders must update borrowers' credit records within three working days after a loan has been fully repaid. OJK has also introduced a reporting threshold requiring debtor information to be submitted only for credit facilities exceeding Rp 1 million.

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