JAKARTA, April 24 (Xinhua) -- Indonesia's Financial System Stability remains strong in the first quarter despite rising global economic and financial market uncertainties, according to Finance Minister Sri Mulyani Indrawati.
The heightened volatility was largely driven by escalating trade tensions following tariff policies implemented by U.S. President Donald Trump, Sri Mulyani said at an event on Thursday.
"The stability of Indonesia's financial system in the first quarter of 2025 has been maintained amid growing global economic and financial market uncertainty. This uncertainty is mainly triggered by dynamics related to tariff policy from the U.S. government and (such a policy) has led to an escalation of a trade war," Sri Mulyani said.
The minister said that Trump's tariff policy has sparked a trade war, potentially dampening economic growth in the United States and globally. This has led to increased volatility in financial markets and disrupted trade and investment governance worldwide.
"The U.S. tariff measures have indirect effects, disrupting supply chains, creating trade and investment uncertainty, and weakening business confidence in economic prospects," she added.
