The escalating socio-political tensions following this past weekend’s demonstrations are believed to pose potential pressure on Indonesia’s financial market stability.

Nevertheless, Senior Economist Raden Pardede stated that Indonesia’s financial stability remains well-maintained for now. He attributed this to the existence of the Financial System Stability Committee (KSSK) and established crisis-handling protocols. However, he emphasized that maintaining stability still depends on effective cross-agency coordination.

“From what we have learned, there is now the KSSK, the Financial System Stability Committee. They already have established procedures for handling crises. That’s usually how it works,” Raden said on CNBC Indonesia’s Closing Bell program, Monday (9/1/2025).

He noted that the Ministry of Finance, Bank Indonesia, and the Financial Services Authority, as the pillars of Indonesia’s financial system, must remain vigilant and be ready to intervene should there be excessive market volatility. This is particularly crucial concerning potential depreciation of the rupiah, which opportunistic parties may exploit.

“At the same time, we hope no one uses this issue, including the demonstrations, to disrupt market volatility excessively. We know there are always people who try to fish in troubled waters,” he added.

Raden further stressed the importance of aligning fiscal, monetary, and real-sector policies with political and security stability.

He added that although fundamental indicators such as foreign exchange reserves and economic growth show relatively strong conditions compared to many other countries, socio-political factors must not be overlooked.

“So we do not dismiss those figures, but we cannot ignore that socio-political issues, especially involving young people, if not addressed properly, can erode what we call a solid foundation. If protests disrupt public order, the resilience we are proud of may weaken and decline,” he concluded.