JAKARTA - Deputy Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Mirza Adityaswara asked banks to reserve and strengthen capital in dealing with uncertainty in 2023.
"The banking profit in 2022 is quite good. If the profit is good in 2022, we recommend that the 2023 just-in case insandation worsen," he said when speaking at the Indonesian Business Challenge Business, Thursday, December 15.
Mirza added that several foreplays still show that economic growth will slow down in the 2023 ahun because it is estimated that the Fed will raise interest rates again.
"So it's better if we prepare an umbrella before it rains, if the profit in 2022 is better, then do backup to face 2023 if there is a condition that worsens or slows down," Mirza continued.
He said, based on nominal OJK data on CKPN credit in September 2022, it was recorded at IDR 362.9 trillion or a decrease of IDR 1.5 trillion mtm.
Along with this, the portion of CKPN on total credit was recorded to have decreased in line with the decline in non-performing loans in September 2022.
The largest portion of CKPN is still recorded by BUMN Banks and Foreign Private Commercial Banks (BUSN).
For the risk of bank credit, he continued, currently Indonesia's Non-performing Loan or banking bad credit is at 2.72 percent.
"But usually analysts see that there is a restructuring credit, so they want to see Loan At Risk," he explained.
Loan At Risk (LAR) of Indonesian banking as of October 2022 is at 15.48 percent and has decreased from the peak of the COVID-19 crisis which has touched 28 percent and January 2022 is still at 25 percent.
"Now down 10 percent to 15.4 is a significant improvement. LAR before COVID-19 in 2019 was 10 to 11 percent," concluded Mirza.
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