Jakarta (ANTARA) – Indonesia's financial system maintained its stability through the second quarter of 2026 despite escalating global geopolitical tensions, fluctuating energy prices, and global market volatility, the Financial System Stability Committee (KSSK) announced Monday.Speaking at a press conference following the KSSK Periodic Meeting in Jakarta, Finance Minister and KSSK Chair Purbaya Yudhi Sadewa stated that close policy coordination among financial authorities helped shield the domestic economy from intense external volatility.”Entering the second quarter of 2026, external pressures increased again—in line with the escalation of geopolitical conflict, high energy prices, global financial market volatility, and pressures on the exchange rate and capital flows,” Purbaya said.Despite those global challenges, he emphasized that Indonesia's domestic fundamentals remain resilient, supported by steady economic growth and a robust financial sector.Purbaya noted that the global economic landscape in Q2 2026 faced significant strain from escalating conflicts in the Middle East, which disrupted energy supplies and key trade supply chains.The resulting rise in oil and commodity prices stoked global inflationary pressures, limiting the ability of major central banks to ease monetary policy.In the US, rising inflation risks and shifting trade and fiscal policies renewed expectations of potential Fed Funds Rate (FFR) hikes.The resulting market volatility triggered a flight to safety, strengthening the US dollar, driving up bond yields, and squeezing capital flows toward developing economies.External risks further intensified in July 2026 following renewed conflict between the US and Iran, which disrupted shipping traffic through the critical Strait of Hormuz after a brief period of stabilization under a mid-June interim agreement.Consequently, the International Monetary Fund (IMF) revised its 2026 global growth forecast slightly downward to 3.0 percent year-on-year in its July World Economic Outlook update.Despite global uncertainty, Indonesia's domestic economic performance demonstrated solid resilience.Household consumption remained firm, bolstered by government budget interventions that stabilized basic commodity prices, funded social assistance, and maintained consumer purchasing power.Investment growth also held steady, driven by national priority infrastructure programs and industrial downstreaming projects.Furthermore, policy coordination between the government and Bank Indonesia (BI) ensured ample liquidity across the banking sector.Primary money supply (M0) expanded by 15.4 percent in the third week of July 2026, while industrial activity rebounded into expansion territory with a Manufacturing PMI of 50.2 in July.Looking ahead, the KSSK pledged to continuously monitor external macroeconomic risks and strengthen cross-institutional policy alignment across the Finance Ministry, Bank Indonesia, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS).”With this policy synergy, economic growth for the whole of 2026 is projected to be in the range of 5.6 to 6 percent (yoy),” Purbaya added.