Mr. Wimboh, The Financial Services Sector Is The Only One That Grows Minus In GDP

Illustration (Photo: Doc. Antara)

JAKARTA - The Central Statistics Agency reports that all business fields in Indonesia experienced positive growth in supporting gross domestic product (GDP) in the fourth quarter of 2021, with the exception of the financial services sector.

Head of BPS Margo Yuwono said financial services grew by minus 2.95 percent year-on-year (yoy) compared to the fourth quarter of 2020.

"This happened, among other things, due to the slowdown in banking intermediation services due to a decrease in the spread of reference interest rates and lending rates, accompanied by a significant decrease in secondary income," he said in a virtual press conference, Monday, February 7.

According to Margo, another influencing factor is related to the sector's efforts to make improvements before the end of the year. Then, it was also explained that the condition of the insurance industry in the country also put pressure on the financial services sector.

"Then, there was an increase in operational costs in the fourth quarter of 2021 in the financial services sector and also a decrease in income from various insurance businesses in Indonesia. These factors caused a contraction of minus 2.59 percent,” said Margo.

Previously, the Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso said that his party was indeed focused on optimizing the performance of the intermediation function through lending.

"So far, the OJK has provided an easing of the RWA for credit/financing for the property, motor vehicle, and health sectors, and specifically for the health sector, the Maximum Limit for Credit Distribution (BMPK) has also been relaxed. This is part of an effort to encourage credit and financing demand," said Wimboh in a KSSK presentation last week.