TEMPO.CO, Jakarta – The Financial Services Authority (OJK) claims Indonesia's financial services industry is still strong enough to withstand the rupiah correction. OJK made the conclusion based on the result of stress tests it conducts routinely against the bank.
OJK chief Muliaman Hadad said the rupiah downtrend against the US dollar has little effect to Indonesia's banking industry.
According to Muliaman, Indonesia still has a huge economic potential. He is calling on national banks to focus on said potential in hopes for improvement in the third and fourth quarter of this year.
In quarter two, Indonesia's economy only grew 4.67 percent, down from quarter one's growth rate of 4.71 percent.
He said the regulator will continue to monitor banks' performance in providing financing. He is optimistic that credit growth in 2015 will reach 13-15 percent.
Last week, the rupiah hit a low Rp13,536 per US dollar and was sold for Rp13,604 per US dollar. From January to July this year, the rupiah has depreciated by 8.5 percent against the greenback.
SINGGIH SOARES | DEVY ERNIS | URSULA FLORENE SONIA