CHAIRMAN of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that amidst increasing economic uncertainty and global geopolitical turmoil, the performance of the Indonesian banking industry as of June 2024 remained stable.
This is supported by a high banking capital adequacy ratio (CAR) of 26.18%. Intermediation performance is well maintained with credit growing 12.36% annually (year on year/yoy) or Rp7,478 trillion driven by investment credit reaching 15.09% yoy. In line with credit growth, third party funds (DPK) also grew to 8.45% yoy or Rp8,722 trillion, with current accounts being the largest contributor, growing 13.48%
“The stability of the national financial services sector remains maintained, supported by strong capital, adequate liquidity, a manageable risk profile, and relatively good financial services sector performance,” explained Mahendra.
Banking liquidity in June 2024 was recorded as adequate with a ratio of liquid assets/non-core deposit (AL/NCD) and liquid assets/TPF (AL/TPF) were recorded at 112.33% and 25.37%, respectively, well above the threshold of 50% and 10%. Banking credit risk, Mahendra continued, was also maintained with the ratio of non-performing loans (NPL) nett and gross NPL which remained low below the threshold, at 0.78% and 2.26% respectively.
However, the performance of the domestic stock market in the second quarter of 2024 was affected by increasing pressure in the global market. As of June 28, 2024, the Jakarta Composite Index (JCI) closed at 7,063.58 points, contracting by 3.09% from the previous quarter (quarter to quarter/qtq) or weakened by 2.88% year to date (ytd), with non-resident investors posting net sell of Rp34.00 trillion qtq or Rp7.73 trillion ytd. The market capitalization value reached Rp12,092 trillion or grew by 3.58% ytd.
Entering July 2024, pressure in the domestic financial market was seen to be easing in line with global developments. Non-residents again recorded net buy in the domestic stock market and as of July 26, 2024 (month to date/mtd) recorded net buy amounting to IDR 5.27 trillion, but ytd recorded net sell Rp2.46 trillion.
IHSG closed at 7,288.17 as of July 26, 2024 or strengthened by 0.21% ytd. Fundraising in the capital market as of July 26, 2024 recorded a public offering value of IDR129.68 trillion with 26 new issuers. (N-2)
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