November 3, 2025 | 09:50 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa outlined that Indonesia's financial system remains stable in the third quarter of 2025. The system's stability supports economic growth by remaining vigilant against various global risks.
Purbaya announced this condition after the Financial System Stability Committee (KSSK) held its regular meeting on October 31, 2025. "The meeting agreed to continue strengthening synergy and policy coordination among KSSK member institutions, as well as with other ministries or institutions in an effort to ensure financial system stability while also promoting economic growth," said Purbaya in a press conference at the Bank Indonesia office in Jakarta on Monday, November 3, 2025.
KSSK, consisting of the Finance Minister, the Governor of Bank Indonesia (BI), the Chair of the Financial Services Authority (OJK) Commission, and the Chair of the Deposit Insurance Corporation (LPS) Commission, assessed that the strengthening of vigilance against various risks will continue to be carried out, accompanied by effective policy responses.
The Finance Minister explained that household consumption and investment remained stable in the third quarter, supported by the government, the monetary authorities, and the financial sector. Retail sales in September 2025 grew by 5.8 percent compared to the same period last year. "Followed by consumer confidence in the performance of the government and the continuously improving economy," said Purbaya.
At the end of the third quarter of 2025, manufacturing activity returned to the expansionary area, as indicated by the Manufacturing Purchasing Managers Index (PMI), which reached 50.4 in June of that year.
Purbaya stated that the government's placement of Rp200 trillion in funds contributed to an increase in economic liquidity, as reflected by the 13.2 percent year-on-year growth in primary money.
Economic liquidity, he said, also increased in line with loose monetary policies and liquidity expansion. The broad money supply, or M2, grew by 8 percent in September 2025, higher than the 6.5 percent growth seen in June of that year.
The finance minister also noted that global economic growth continues to face challenges due to the United States' import tariff policy, which creates high levels of uncertainty. However, expectations for future economic improvement are beginning to grow stronger.
Weak economic activity in the United States has led to continued labor market weakness. In response, the U.S. Federal Reserve cut the benchmark interest rate (the Fed funds rate) by 25 basis points in October 2025, bringing it down to a range of 3.75 to 4 percent.
The International Monetary Fund (IMF) has revised upwards global economic growth for this year to 3.2 percent in its 2025 report. Although still lower than the 3.3 percent in 2024, it is an improvement from the previous projection of 3 percent.
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