The Financial Services Authority (OJK) emphasized that the stability of Indonesia’s financial system is still maintained. This stability is also supported by improvements in the intermediation performance of financial services institutions. This figure shows that the national economic recovery is going well.
This financial system has contributed to the continued recovery of the national economy during a weakening economy, high global inflation, aggressive monetary policy tightening, and a prolonged rise in geopolitical tensions.
The capital market, banking, and non-bank financial industry (IKNB) sectors in the country, which are supported by efforts to educate and protect consumers, are still showing a positive trend. The development of these sectors supports the creation of stability in the national financial system.
In its official statement, OJK detailed the stability of the country’s financial system as reflected in the development of financial services sectors such as the capital market and banking sector.
Regarding the capital market, the relatively solid performance of the domestic economy helped to maintain the performance of the composite stock price index (JCI), which tends to be better than regional countries amidst significant corrections in global financial markets.
As of September 30, 2022, fundraising in the capital market is still high, amounting to Rp. 175.34 trillion, with 48 new issuers listed. In the pipeline, there are still 90 public offering plans with a value of Rp61.31 trillion.
As an effort to deepen the market, the Indonesia Stock Exchange listed a new product in the form of Structured Warrants on September 19, 2022. As of September 30, 2022, the transaction value of Structured Warrants reached Rp38.44 billion.
Furthermore, banking credit in August 2022 grew relatively stable at 10.62 percent (year-on-year/yoy), which was mainly supported by working capital loans which grew by 12.19 percent (YoY).
At the same time, the growth rate of Third Party Funds (DPK) reached 7.77 percent (YoY) to Rp7,608 trillion.
The country’s banking risk profile in that period was still maintained with a ratio of non-performing loans or banking net NPLs of 0.79 percent (gross NPL: 2.88 percent).
The Covid-19 restructuring credit again recorded a decline of Rp. 16.77 trillion to Rp. 543.45 trillion with the number of customers also decreasing to 2.88 million customers. That way, the value of the Covid-19 restructuring credit and the number of its customers have decreased by 34.56 percent and 57.90 percent, respectively, from their highest point.
In August 2022, OJK also recorded a Net Open Position (NOP) of 1.60 percent, below the threshold of 20 percent, while the Capital Adequacy Ratio (CAR) of the banking industry increased to 25.21 percent.