Financial System Stability is Maintained

Jakarta, InfoPublik – Bank Indonesia (BI) Communication Department Executive Director, Onny Widjanarko stated that financial system stability is maintained with improved intermediation function and controlled credit risks.

“Capital Adequacy Ratio (CAR) of banking sector in January 2019 remained high with a percentage of 23.1%. This condition is improved with Non-Performing Loan (NPL) which remained low at 2.6% (gross) or 1.2% (net),” said Onny Widjanarko in press release received in Jakarta, Tuesday (26/3).

Onny continued that in terms of intermediation function, credit growth in January 2019 was recorded at 12.0% (yoy), higher than of December 2018 (11.8%). Third Party Funds (DPK) reached 6.4% in January 2019, which only made slight differences with the growth of 6.5% in December 2018.

Meanwhile, the performance of go public corporates was recovering as reflected from increase in profit and solvency.

“For the next step, Bank Indonesia prospected that the expansion for credit growth remains open without disrupting financial system stability,” he said.

According to him, this view takes into consideration the credit cycle which stays below the optimum level amid the high prospect demand.

“Bank Indonesia estimated bank credit to keep increasing near the upper limit at the range of 10-12% (yoy) and is supported by DPK growth estimated at the range of 8-10% (yoy),” he concluded.

Reporter: Isma

Translator: Wisnu Wardoyo