English Version
ENGLISH
| Friday, 28 July 2017 |
Indonesia Version
INDONESIA
Facebook
Twitter


Thursday, 27 July 2017 | 21:46
Jokowi: Protesters Can Challenge Perpu on mass Organizations Protesters are planning to march from Istiqlal Mosque in
central Jakarta to the Constitutional Court
Thursday, 27 July 2017 | 20:46
Indonesians Legally Impossible to Become Asgardians Indonesia does not allow dual-citizenship which makes it
impossible for Indonesians to become citizens of Asgardia
OJK to Revise Loan Growth Target
A logo of the Financial Services Authority (OJK). TEMPO/Tony Hartawan
Monday, 12 June, 2017 | 07:56 WIB
OJK to Revise Loan Growth Target

TEMPO.CO, Jakarta - Chief commissioner-elect of the Financial Service Authority (OJK) Wimboh Santoso said the agency may revise loan growth target for this year. According to him, the target of 12 percent relies heavily on the real sector. "There should be economic activities. An intervention is need? As far as OJK concerned, [the process of obtaining] permits must be expedited to create demand," he said last week.

Wimboh, who will be taking office in July, said that aside from real sector, several aspects need to be taken into consideration to reach double-digit growth. Capital strength of banks must be mapped because it will become the pillar of proportional liquidity.

Read also: OJK Records Credit Growth of 9.2 Percent

Wimboh said that the mapping will create good risk mitigation policies. As such, the three aspects will determine the achievement of the target. "If we insist but there was no demand, it would be a disaster."

Earlier, Deputy Governor of Bank Indonesia Erwin Rijanto said in May that loan growth had reached 9.8 percent.

Read also: OJK Disseminates Regulations on Fintech and Pawnshop

To achieve the targeted 12 percent, according to Erwin, the government need to ease the process to obtain permits and provide incentives to attract more private investment. Moreover, ratings agency Standard & Poor's upgrade last month will help bring more investment. Bank Indonesia has to be wary of monetary risks amid uncertainty in global economy.

Loan growth would allow people to receive higher term deposit interest rates from bank, which is expected to attract more people to save their money in banks. State-owned lender Bank Mandiri Kartika Wirjoatmodjo, however, said he will await whether a significant loan growth would materialize before raising term deposit interest rates.

However, non-performing loans (NPL) still overshadows banks. As of late March, bank NPL stood at 3.04 percent. It shows that corporate performance has not fully recovered yet.

 

ANGELINA ANJAR SAWITRI

 



via Facebookvia TEMPO ID

Comments


Disclaimer: The views expressed in the comments sections are personal responses that do not represent the editorial policy of tempo.co. Our editorial staff reserves the right to moderate or take down comments that contain harassment, intimidation and discrimination against ethnicity, religion, race, and inter-group relations.