Economic Growth Drops Slightly, OJK Boss: Financial Services Sector Grows Strongly

Chairman of the OJK Board of Commissioners Mahendra Siregar. (Photo: Doc. ANTARA)

JAKARTA - The Financial Services Authority has opened its voice regarding the report of the Central Statistics Agency (BPS) which revealed that economic growth in the second quarter of 2024 was 5.05 percent year on year (yoy).

Chairman of the OJK Board of Commissioners Mahendra Siregar said this economic growth had indeed decreased slightly compared to the previous quarter which recorded a growth of 5.05 percent.

"If we look at the role of the financial services sector as an intermediation of the provision of financing for the real sector, which supports the growth of economists, we can report the figures seen in all fields in the financial services sector continue to grow strongly," he said in an online press conference, Monday, August 5.

He detailed, based on OJK records, banking credit as a whole until the end of June was recorded to have grown by 12.36 percent.

Mahendra said the largest growth was recorded in investment loans which grew 15.09 percent, followed by working capital loans of 11.68 percent.

"The two components in credit are support for the growth engine in the real sector. Seeing this, we estimate that the growth of real sector economers in the future with strong support from bank credit," said Mahendra.

From the multifinance sector, he continued, the overall growth in financing remained above 10 percent.

The same thing happened to the insurance sector. Commercial insurance premiums grew positively by 8.46 percent in the second quarter.

Then, continued Mahendra, the number of achievements in the capital market for issuers of issuers reached the set target.

"That's one side of the performance that exists in the financial services sector looks strong and supports the 2nd quarter but at the same time becomes a strong foundation for the growth of the next quarter," he concluded.