Easing oil prices offer Indonesia scope to sustain growth
KSSK Secretary Herman Saheruddin said crude prices were around US$92 per barrel after previously exceeding US$100.
Indonesia’s Financial System Stability Committee (KSSK) sees falling global oil prices as a chance to preserve economic growth despite geopolitical tensions and high interest rates, its secretary Herman Saheruddin said at a media briefing in Surabaya.
Herman said oil had eased to around US$92 per barrel, having earlier exceeded US$100 per barrel. He expressed hope that the decline would continue and help Indonesia achieve stronger growth.
Earlier energy price increases had been a major contributor to global inflation, prompting several countries to lift interest rates, he said. Conflicts in the Middle East had added to those pressures by disrupting crude supplies.
KSSK expects inflationary pressure from energy to diminish if the downward trend continues, potentially giving countries greater scope to sustain expansion. Herman said oil prices still required monitoring because of their influence on inflation and monetary policy worldwide. He also identified oil and global inflation trends as important considerations for Indonesia’s financial stability and sustained growth.
