THE Indonesian Sharia Bank Association (Asbisindo) supports the strategic steps of the Financial Services Authority (OJK) in ending the stimulus in the form of banking credit restructuring to handle the negative impact of the Covid-19 pandemic.
This support from Asbisindo has strong reasons. General Chairman of Asbisindo Hery Gunardi said that the condition of banking in the country, especially sharia banking, currently has high resilience post-pandemic. Although the condition of the Indonesian economy is still overshadowed by global economic uncertainty.
This cannot be separated from the government’s appropriate strategy and response in facing the crisis caused by the pandemic and global economic uncertainty. This strategy and quick response helps provide relief to banking customers affected by the pandemic.
“On the other hand, the capital level of the national banking industry, especially sharia banking, is quite strong. Its liquidity is also very adequate. These factors are also strengthened by sharia banking management which is able to implement good risk management,” said Hery, Monday (1/4).
Asbisindo supports OJK in ending restructuring because currently the economic recovery is showing improvement. The inflation rate continues to be suppressed and increasingly under control. On the other hand, domestic investment is growing.
These factors are evidence that post-pandemic economic conditions are increasingly recovering. This is in line with the status of the Covid-19 pandemic in Indonesia which was declared over by President Joko Widodo through Presidential Decree no. 17 of 2023 which was published in June last year.
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“This government policy has turned the wheels of the community’s economy faster,” said Hery.
On the other hand, entering this year the Indonesian banking industry indicators are in prime condition. OJK noted that in January 2024 the capital adequacy ratio (CAR) was at the level of 27.54 percent.
Liquidity conditions seen from the Liquidity Coverage Ratio (LCR) reached 231.14 percent. Meanwhile, NonCore Deposits (NCD) were 123.42 percent with an adequate level of profitability.
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“These ratios reflect banking in the country, especially sharia banking, which is strengthened by solid risk mitigation,” said Hery, who is also the President Director at PT Bank Syariah Indonesia Tbk (BSI).
Based on the Sharia Banking Statistics report released by the OJK, the number of sharia banking assets continues to increase. At the end of 2023, assets of sharia commercial banks (BUS) and sharia business units (UUS) reached IDR 868.98 trillion, growing 11.1 percent annually (year on year/yoy). This asset growth was driven by increased financing and third party funds (DPK).
“These data show that the sharia banking industry is quite resilient and continues to grow. For this reason, we are optimistic that the market is ready for the end of restructuring, which will be effective as of 31/3/2024,” concluded Hery.
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