National economy still faces risks in 2019: KSSK

GLOBAL ECONOMY - JAKARTA. The Financial System Stability Committee (KSSK) has said Indonesia’s economy faces several risks this year, such as continuing trade and current account deficits and liquidity constraints.

Finance Minister Sri Mulyani, who is also the KSSK chairwoman, said external factors that might affect the country’s economy included the global economic slowdown triggered by the United States’ monetary policy normalization and the trade war between the US and China.

“We will continue to coordinate efforts to protect the national economy and financial stability,” Sri Mulyani said in a press conference, following a KSSK meeting in Jakarta on Tuesday.

Bank Indonesia Governor Perry Warjiyo said the central bank would maintain liquidity adequacy in the foreign exchange market to assure stability in the rupiah’s exchange rate.

Meanwhile, Financial Services Authority (OJK) head Wimboh Santoso expressed hope that credit growth would remain high in 2019, after a rate of 11.75 percent in the previous year.

“In 2019, we will continue to support government-prioritized financing to boost growth of the overall economy and small and medium enterprises, particularly those that produce export-oriented products,” Wimboh added as quoted by kompas.com.

Meanwhile, Deposit Insurance Corporation (LPS) board of commissioners chairman Halim Alamsyah said people’s trust in banks’ management of their wealth was still high, although the LPS needed to continuously monitor trends in bank interest rates.

“In the course of 2018, third-party fund movements were normal, there was nothing to worry about,” Halim said.