TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said Indonesia`s financial system stability in the first quarter this year is normal. The stability is indicated by maintained inflation rate, investments, and banks` improving liquidity.
Speaking at a press conference at the Finance Ministry's office in Jakarta on April 27, Sri Mulyani also said that the rupiah exchange rate is under control while the state securities (SBN) market shows improvement and the stock market is strengthening.
These indications were concluded during a quarterly meeting of the Financial System Stability System held last night at the Financial Services Authority (OJK) building in Jakarta.
The Finance Minister also said that these developments are in line with the IMF's global growth revision and subsiding political worries in the European Union that came with the first leg of France's presidential elections.
"However, we believe there are still risk potentials to watch out for, both from inside and outside Indonesia," she said.
Global risks include the US' trade policies that lean towards protectionism, as well as heightening geopolitical tensions—especially from North Korea.
Domestically, Sri said they will keep an eye on credit quality, changes in administered prices, corporate expansions, and banking climate.
"We also continue to monitor state budget spending to keep deficits at a safe level," she added.
GHOIDA RAHMAH
