OJK: Financial Services Sector Maintained But Beware Of Global Supply Chain Disturbances And US Tapering

Illustration (Photo: Doc. Antara)

JAKARTA - A meeting of the Board of Commissioners of the Financial Services Authority (OJK) stated that the stability of the financial system throughout September 2021 was in a maintained condition with performance that continued to grow positively.

OJK Deputy Commissioner for Public Relations, Anto Prabowo, said that although it tends to be stable, financial industry players need to pay attention to several important factors.

First, it is necessary to observe global developments, especially the trend of increasing inflation due to disruption of the global supply chain.

"In addition, be aware of the impact of tightening regulations in China, as well as the process of normalizing global monetary policy (US tapering) which is expected to begin soon", he said in a press statement, Thursday, October 28.

Meanwhile, for domestic factors, Anto reminded them to pay attention to the development of daily COVID-19 cases.

"Although domestic economic indicators continue to show improvement, it is important to observe the latest developments to take anticipatory steps", he said.

In general, Wimboh Santoso's subordinates explained that fundraising in the capital market until October 26, 2021, had reached a value of IDR 273.9 trillion, an increase of 282.8 percent from the same period last year with 40 new issuers listed on the stock exchange.

Banking credit in September 2021 again increased and grew by 2.21 percent year-on-year (YoY) and 3.12 percent year-to-date (YTD). Third-Party Funds (DPK) recorded growth of 7.69 percent YoY.

Then, the insurance sector managed to collect premiums in September 2021 of IDR 22.2 trillion with life insurance premiums of IDR 15.1 trillion, as well as general insurance and reinsurance of IDR 7.1 trillion.

Furthermore, fintech P2P lending in September 2021 recorded an increase in outstanding financing of IDR 1.38 trillion (YTD IDR 12.16 trillion) or grew by 116.2 percent YoY.

The risk profile of financial services institutions in September 2021 was still relatively well maintained with the gross NPL ratio recorded at 3.22 percent (net NPL: 1.04 percent) and the NPF ratio for financing companies in September 2021 falling at 3.85 percent.

"OJK continuously conducts assessments of the financial services sector and the economy to maintain the momentum of accelerating national economic recovery and continue to strengthen synergies with stakeholders to maintain financial system stability", concluded Anto.