The Financial System Stability Committee (KSSK) said Indonesia’s financial system remained stable in the third quarter of 2026, even as external pressure and domestic market volatility intensified in October.

Finance Minister Suahasil Nazara linked the global strain to geopolitical escalation, higher energy prices, and tight monetary policies in advanced economies. Domestically, MSCI’s remarks about Indonesia’s equity market and pressure on the rupiah contributed to capital outflows, particularly from stocks.

The government still projects full-year 2026 growth of 5.4%–5.5%. Domestic demand, investment, government consumption, and exports were cited as supports. KSSK also highlighted coordination among fiscal, monetary, and financial-sector authorities to contain spillover risks.

Domestic indicators and the budget’s role

Data presented at the press conference showed continuing activity: car sales grew 28.1% year on year in September and motorcycle sales rose 15.4%. Indonesia’s manufacturing PMI increased from 52 in September to 54 in October.

The state budget is being used as a shock absorber through subsidies, compensation, social assistance, food-price stabilization, and job-creation programs. By the end of the third quarter, state revenue reached Rp2,341.5 trillion, up 25.5% year on year; spending was Rp2,660.5 trillion, up 19%; and budget financing reached Rp462 trillion, growing 0.4%.

These figures were presented by the government at the KSSK press conference. The 5.4%–5.5% figure is a full-year forecast, not a final result. KSSK said it would continue monitoring external risks and coordinating with stakeholders.

Source: Robertus Andrianto, “Rupiah Tertekan & Saham Bergejolak, KSSK Ungkap Ekonomi Kondisi RI,” CNBC Indonesia, November 4, 2026. Read source.