August 8, 2020

Emerging Financial Stability, Banking Positive Moves

Indonesia. The government continues to maintain the stability of the financial sector is a source of liquidity for economic growth and development.

As the trend of economic growth continues to increase, the Chamber of Commerce and Industry (Kadin) Indonesia assess the rate of growth of the financial sector were also increased significantly.

“Nearly all of the banking sector until the middle of this year showed the stability of banking performance is maintained with an increasingly powerful intermediation in support of financing the economy,” said Vice Chairman of the Chamber Banking and Financial Rosan P Roeslani in his official statement.

Some of the performance indicators of the banking industry, he said, looks pretty solid development, as reflected by high capital adequacy ratio (CAR / Capital Adequacy Ratio) well above the minimum requirement of eight percent.

In addition, he said subdued ratio of nonperforming loans (NPLs / Non Performing Loan) gross under five percent. Banking intermediation continues to improve, reflected in credit growth to the end of June 2012 reached 25.8 per cent (year on year).

“With the developments in the banking industry, the expected capacity of the economy in the future may increase,” he said on the sidelines of the National Coordination Meeting of the Chamber of Commerce in Kuta, Bali.

Another positive indicator, outside of banking, capital markets and is a non-bank financial institutions are also part of the financial sector in Indonesia.

Nonbank institutions that help provide an alternative means of investment and financial planning for people that work pretty well. In general, the performance of the capital market and non-bank financial institutions until the first half of 2012 also showed significant progress.

Indonesia stock market scored positive performance throughout the first semester of 2012. In July 2012, JCI recorded an increase of 4.7 percent at 4142.34 compared to the previous month.

On the other hand, the government is expected to continue to support the growth of financial institutions and non-bank, with a range of government policies that support the financial sector.

Until now, the concentration of financial sector assets are still focused on the banking industry with a share of approximately 78.2 percent of the total assets of financial institutions. “Although the role of financial institutions such as finance companies, insurance companies and pension funds began quite prominent,”