According to the report, the investment credit growth of 13.15% annually influences banking credit improvement.
Heaptalk, Jakarta — Indonesia’s Financial Services Authority (OJK) recorded the banking credit has enhanced to around 11.16% year-on-year (YoY), achieving Rp6,347 trillion, or approximately US$407 million on November 2022, compared to the former worth US$896 million, or nearly Rp13.96 trillion (US$1 equals Rp15,577) on October 2022.
As explained by the Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, during the Monthly Board of Commissioners Meeting (RDKB) virtually (02/01), the result is primarily boosted by the investment credit development of 13.15% annually. Meanwhile, Dian also delivered other factors, including increased working capital credit by 11.27% and consumption credit growth of 9.10% annually.
Further, in terms of Third-party Funds (DPK), the Financial Services Authority also observed significant progress by 8.78% YoY, becoming Rp7,974 trillion (US$512 million). This output is driven by savings and deposits, impacting the Loan to Deposit Ratio growth at 79.6%.
On November 2022, Dian also revealed the banking industry’s liquidity is at an adequate level, with a well-maintained liquidity ratio. This point is reflected by the liquid assets of non-core deposits (AL/NCD) ratio increased by 134.97%, compared to the previous output of 130.17% per October 2022, and liquid assets of DPK (AL/DPK) development of 30.42%, compared to the October outcome of 29.46%. This accomplishment exceeds the threshold of 50% and 10%, respectively.
In this virtual meeting, Dian also added the banking credit risk had performed diminishment significantly, reflected by Non-Performing Loan (NPL) net at the level of 0.75% and gross NPL at the position of 2.65% per November 2022. Meanwhile, during the October period, the Net NPL ratio occupied the level of 0.78%
On the other hand, the credit restructuring of COVID-19 has also demonstrated a significant reduction worth US$851 million (Rp13.27 trillion), becoming US$32.07 billion (Rp499.8 trillion). The Financial Services Authority (OJK) party also disclosed a decrease in the number of customers per November 2022, becoming 2.40 million people, compared to the last October 2022 of 2.53 million restructuring debtors.
Also, the Financial Services Authority report revealed the Net Open Position (PDN) of 2.05%, far below the threshold of 20%. Regarding the capital side, the banking industry possessed a minimum Capital Adequacy Ratio (CAR) of 25.49% in November 2022, compared to the former position of 22.08% in October last year.
