Indonesia’s Suahasil Nazara to Maintain KSSK Coordination on Economic Policy

Suahasil Nazara Pledges Continued KSSK Coordination on Economic Direction

Tempatdonasi.com – Indonesia’s newly appointed Finance Minister, Suahasil Nazara, says cooperation within the Financial System Stability Committee, known as KSSK, will remain central to shaping fiscal and economic policy in the years ahead. He emphasized that the coordination is required by law and gives policymakers a broader view of conditions affecting the national economy.

“We will certainly continue coordination with the KSSK, as it is mandated by law,”

Suahasil made the statement after formally taking over the finance minister post at the Ministry of Finance in Jakarta on Tuesday, September 15, 2026. The handover followed his inauguration at the State Palace a day earlier, on Monday, September 14.

The KSSK brings together institutions whose responsibilities span fiscal policy, monetary conditions, financial-sector supervision, and deposit protection. Its core members are the Ministry of Finance, Bank Indonesia, the Financial Services Authority, or OJK, and the Indonesia Deposit Insurance Corporation, known as LPS.

A forum for cross-institutional policy discussion

For the finance minister, the committee is more than a formal coordination mechanism. It provides a setting where institutions with different mandates can exchange assessments of Indonesia’s economic development and financial-system conditions. Such discussions can help ensure that fiscal choices are considered alongside monetary policy, banking oversight, and safeguards for depositors.

Suahasil said KSSK deliberations occur through regular meetings as well as discussions at the technical-team level. He also pointed to the recent participation of the Investment Management Agency, BPI Danantara, in a KSSK meeting.

Danantara’s involvement adds the perspective of an institution responsible for major investment and business-management activities. Its presence can give committee members an additional view of the factors influencing investment, corporate operations, and wider economic developments.

“KSSK holds periodic meetings, and technical team meetings also take place. Additionally, Danantara was invited to the most recent KSSK meeting. Indeed, having more parties discuss and explain the various aspects of Indonesia’s economic development leads to better outcomes,”

The committee’s role is particularly significant because economic policy often crosses institutional boundaries. Government spending and taxation decisions sit with the Finance Ministry, while Bank Indonesia handles monetary policy. OJK oversees the financial-services sector, and LPS is tasked with protecting depositors and supporting confidence in the banking system. Coordination allows these bodies to consider developments from their respective areas before policy decisions move forward.

Transition at the Finance Ministry

Suahasil’s appointment was formalized through Presidential Decree Number 97P of 2026, which concerns the dismissal and appointment of the finance minister for the Red and White Cabinet during the remainder of the 2024–2029 term. President Prabowo Subianto issued the decree on September 14, 2026.

He succeeds Purbaya Yudhi Sadewa, with the official transition ceremony held at the Ministry of Finance the following day. Purbaya had taken office as finance minister on September 8, 2025, replacing Sri Mulyani.

With Suahasil’s appointment, he becomes the third finance minister to serve under President Prabowo’s administration. His return to the ministry’s top position follows prior experience as deputy finance minister, a role he began during President Joko Widodo’s Onward Indonesia Cabinet and continued under the Red and White Cabinet.

That experience places Suahasil in a familiar institutional setting as he assumes responsibility for fiscal policy at a time when coordination across financial authorities remains a key part of the government’s policy framework. The Finance Ministry’s work affects state revenue, spending priorities, budget financing, and the broader management of public finances. Through KSSK, those decisions can be discussed alongside considerations involving monetary stability and financial-sector resilience.

Why the coordination matters

For businesses, investors, financial institutions, and households, the value of such coordination lies in clearer communication among authorities whose policies can affect the economy in different ways. Fiscal policy can influence demand and public investment, while monetary measures can shape financing conditions and inflation management. Financial supervision and deposit insurance, meanwhile, contribute to confidence in banks and other financial institutions.

KSSK’s recurring meetings offer a channel for these perspectives to be brought together. The inclusion of technical teams also means discussions can extend beyond senior-level policy statements and examine implementation issues in greater detail.

Suahasil’s comments indicate that this model will continue under his leadership of the Finance Ministry. Rather than treating fiscal policy as a standalone function, he presented KSSK coordination as a necessary part of understanding Indonesia’s overall economic trajectory.

As the new minister begins his term, the committee will remain one of the principal forums linking the government’s fiscal agenda with the work of Indonesia’s central bank, financial regulators, deposit insurer, and, more recently, the investment-management agency Danantara. The approach reflects the interconnected nature of economic management, where decisions in one area can carry implications across the wider financial system.