The Financial System Stability Committee (KSSK) is currently focusing on efforts to maintain price stability to protect people’s purchasing power.
According to Finance Minister Sri Mulyani Indrawati, this is important to anticipate the further decline in global economic growth this year.
“If in 2024, outlook“-3.2%, meaning that global economic growth is still stagnant and weak and even weaker than last year,” said Sri Mulyani at the Press Conference on the Results of the 2024 KSSK III Periodic Meeting in Jakarta, Friday (2/8).
It refers to the report World Economic Outlook July 2024 edition issued by the International Monetary Fund (IMF). The institution projects that the global economy will only be able to grow 3.2% this year. This growth is weaker than the growth in 2023 which reached 3.3%.
The IMF projection, said Sri Mulyani, must be responded to by the government by maintaining people’s purchasing power. Fiscal policy will concentrate on that effort considering that consumption is still the mainstay of national economic growth.
“Therefore, fiscal policy for the implementation of the 2024 State Budget, especially from the government spending side, will continue to focus on maintaining price stability,” he added.
Also read: Indonesian Economy Remains Resilient Amidst Global Economic Turmoil
Several factors are still slowing down global economic growth. Starting from the unemployment rate in the United States (US) in June 2024 which increased, to China’s economic growth which weakened and did not reach the target of 5%.
“Domestic demand in China remains weak. On the other hand, inflation in the United States in June showed a decline in line with declining energy price pressures,” explained the Minister of Finance.
With this situation, the KSSK consisting of the Minister of Finance, the Governor of Bank Indonesia (BI), the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), and the Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS), strengthened coordination and synchronization to mitigate the negative impact of the spread of global uncertainty on the Indonesian economy.
“Going forward, we see that the increase in domestic economic activity will continue until the end of the year. Of course, this needs to be maintained and we will also continue to run social protection programs,” said the Minister of Finance. (E-2)
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