OJK: Program 3 Million Houses And MBG Can Be An Insurance Industry Opportunity

Workers complete construction at one of the subsidized housing allocations in Bagendung, Cilegon City, Banten (photo: dock. between)

JAKARTA The Chief Executive of the Insurance, Guarantee and Pension Fund (PPDP) of the Financial Services Authority (OJK), Ogi Prastomiyono, stated that the program for building 3 million houses and free nutritious food programs (MBG) can be an opportunity for the growth of the insurance industry in Indonesia.

"The existence of various government priority programs such as the construction program of 3 million houses and free nutritious eating programs has the potential for the insurance industry to be able to contribute," said Ogi Prastomiyono in Jakarta, Wednesday, January 29.

Ogi revealed that the OJK had discussed with insurance associations regarding their support for government programs. According to him, in general, the insurance industry is ready to commit to supporting all government programs.

Meanwhile, the Chief Executive of the Supervision of Financing Institutions, Ventura Capital Companies, Micro Financial Institutions, and Other Financial Services Institutions (PVML) of the OJK, Agusman, said that government programs can help increase the financing sector, especially when the automotive sector is still experiencing recovery uncertainty.

"Financing into the housing sector is estimated to be a potential financing segment with a program of 3 million houses by the government," he said.

On the other hand, the Chief Executive of OJK Banking Supervision, Dian Ediana Rae, added that in supporting the realization of the construction of 3 million houses for low-income people (MBR), OJK continues to coordinate with related institutions regarding the distribution of housing loans.

"In this case, lending to the public is based on the principle of risk appetite management and the principle of prudence in each bank, so it is not only based on the quality of credit facilities on financial information service systems (SLIK)," he explained.

OJK together with the government and other regulators will continue to monitor various indicators of the national financial system to encourage stable economic growth through various relevant policies and stimuli.

Until November 2024, banking liquidity conditions were considered adequate, with liquid assets for non-core deposits (AL/NCD) of 112.94 percent, liquid assets for third party funds (AL/DPK) of 25.57 percent, and liquid cover ratios (LCR) of 213.07 percent.

"The Loan to Deposit Ratio (LDR) of 87.34 percent is still considered adequate in anticipating an increase in credit," added Dian