Disentil Jokowi, OJK Boss Opens Up About Credit & Savings of Indonesian People in Banks

Jakarta –

President Joko Widodo (Jokowi) highlighted the circulation of money in society which is considered to be increasingly dry. At the same time, the number one person in Indonesia also encouraged banks to continue to encourage credit distribution, especially to MSMEs.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that currently banks still have large enough liquidity space to distribute credit. This can be seen from the savings to credit ratio or loan to deposit ratio (LDR) which is at 83%.

Mahendra believes it is natural that the growth of credit and third party funds (DPK) this year will slow down. This is because last year conditions rebounded after being hit by a crisis due to the COVID-19 pandemic.

“I think it’s natural that it’s a little lower than last year, because last year it was a rebound from the biggest pandemic conditions during this century, perhaps so that now it is still maintained at a growth rate that is more or less the same as pre-pandemic. So I think that’s a reasonable level of condition,” said Mahendra when met at Shangri-La Jakarta, Thursday (30/11/2023).

He believes that the thing that needs to be maintained at this time is growth in the real sector. According to him, demand for investment credit and working capital will really depend on the growth of the business world.

“As long as it is maintained and understood, the government really knows this and is maintaining it this year, it will certainly open up very good banking opportunities,” he said.

Previously, Jokowi asked banks to continue to encourage credit distribution, especially to MSMEs. Even though we have to be prudent, he warned that if we are too careful, the circulation of money in the real sector will dry up.

“Indeed, we have to be prudent in our steps, but also not too careful. If credit is too careful, everyone is too careful, the result will be dry turnover in the real sector. The most important thing is to anticipate all future scenarios, be quick to respond to any changes for example, for inflation, keep checking in the field,” said Jokowi at the Bank Indonesia Annual Meeting (PTBI) at the BI Office, Central Jakarta, Wednesday (29/11).

Jokowi admitted that he received information from business actors regarding the circulation of money in Indonesia which was said to be dry.

“It’s possible that too much is used to buy SBN or too much is used to buy SRBI or SVBI so that there is less going into the real sector,” said Jokowi.

(aid/that)