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Economic News – Berita Bahasa Inggris

Economic News – Berita Bahasa Inggris

Economic News - Berita Bahasa Inggris
Economic News – Berita Bahasa Inggris

Economic News

Processing Sector Increases NPL to 2.73 Percent – Jakarta, – The Financial Services Authority (OJK) recorded the banking industry gross non-performing loan (NPL) ratio as of October 2019 at 2.73 percent. That number rose slightly compared to September 2019 which amounted to 2.66 percent.

Deputy Commissioner for Banking Supervision III OJK Slamet Edy Purnomo said the increase in the gross NPL of the banking industry was affected by the manufacturing sector which increased from 2.52 percent in December 2018 to 4.12 percent in October 2019.

“The gross NPL of the trade sector also rose from 3.57 percent to 3.92 percent. If there are other fisheries but it is not significant,” he said, Friday (11/29).

He explained that the total lending to the processing sector increased from Rp874 trillion in October 2018 to Rp900 trillion in October this year.

See also: BI Call Bad Credit Increases Due to Low Distribution
Overall, lending grew by 6.53 percent as of October 2019. This realization slowed compared to September 2019 which reached 7.8 percent.

“Most in the credit fell in the mining and construction sectors. The others increased,” he added.

For next year, Edi said that a number of banks were pessimistic about the growth of credit due to the continuing trade war between the United States (US) and China. As a result, several banks are targeting single-digit credit growth.

“The results of discussions with banks are pessimistic and optimistic. Some banks have one digit, but there are still two digits,” he explained.

Meanwhile, life insurance premiums were recorded at Rp152.4 trillion as of October 2019. Then, general insurance or reinsurance premiums were Rp82.2 trillion.

“The risk-based capital (RBC) of the life insurance and general insurance industries is 705 percent and 329 percent, far above the regulatory threshold,” said Edi.

Furthermore, the raising of funds through the capital market amounted to Rp155 trillion. Some of the funds came from corporate actions in the form of an Initial Public Offering (IPO) conducted by 48 companies.

Then, the Composite Stock Price Index (CSPI) was corrected in the third week of November 2019 to 6,100 levels compared to October 2019 which was still at 6,228.