The Deposit Insurance Corporation (LPS) estimates that the interest on deposits will continue to decline but at a slower rate. The decline in interest rates has slowed down since the end of 2021, while liquidity conditions are still positive. At
The International Monetary Fund (IMF) highlighted three global risks that may overshadow Indonesia’s economic recovery. The first risk is the uncertainty of the pandemic, driven by low vaccination rates, risks of lockdowns and the emergence of new variants. The second
OJK is closely monitoring the high levels of risky credits (or loans at risk) at banks to ensure that financial markets remain healthy as Indonesia enters the third year of the C-19 pandemic. OJK shared that the gross non-performing-loans (NPL)
Digital banking transactions are gaining popularity due to improved customer experience. This trend is also supported by the growth in merchants providing cashless payment options for consumers. Bank Indonesia predicts the value of digital banking transactions to reach US$ 3.45
Bank Indonesia (“BI”) expects rising inflation for 2022 Q3. This will result in BI raising benchmark interest rate, which is currently at the lowest level in history. BI Governor Perry Warjiyo commented that 2022’s inflation rate will be higher than
The World Bank estimates that the Indonesian economy will grow by 5.2% this year, from 2021’s estimated economic growth at 3.7%. This is due to strong domestic demand and rising commodity prices. Meanwhile, the neighbouring countries’ economic growth forecasts are
State-owned banks are optimistic about the economic recovery, with a number of banks projecting credit growth to reach 10% by 2022. Both BRI and BTN estimate that credit distribution in 2022 to have year-on-year growth at 8-10%. BRI’s lending focus
OJK recorded that the banking industry’s credit distribution reached US$ 40 billion (IDR 5,653 trillion) as of September 2021, a 2.21% year-on-year increase. State-owned banks disbursed ~51% of the total credit volume as of Q3, and increased their lending by
As of Q3 2021, third party funds (DPK) in the banking industry continue to grow, albeit at a lower growth rate compared to previous months. On the other hand, credit disbursements continued to grow in the same period. Meanwhile, the
Domestic economic outlook from consumers and businesses have strengthened as Indonesia loosens its social distancing policies (PPKM). The government implemented a number of easing measures in November, including increasing the capacity of shopping malls and public transportation. This is reflected
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