Indonesian Financial Services Sector Remains Stable Amid Volatility: OJK Chairman’s Report – CNBC Indonesia

Jakarta, CNBC Indonesia – The performance of financial intermediaries is called mixed. At a time when interest in the capital market soared, other sectors were observed to be moderated.

“Amid the volatility of the global financial sector, the stability of the Indonesian financial services sector remains stable supported by high capital, maintained risk profile, and adequate liquidity,” Chairman of the Board of Commissioners (DK) of the Financial Services Authority (OJK) Mahendra Siregar during a meeting with the Indonesian Parliament, Monday (5/6/2023).

In his presentation, it was stated that the total value of the initial public offering (IPO) as of 31 May 2023 reached IDR 31.68 trillion from 33 companies that took the floor on the Indonesia Stock Exchange (IDX). This value is almost equivalent to the IPO value throughout 2022, which is IDR 33 trillion from 59 companies.

Coupled with the value of limited public offerings (PUT), debt securities and sukuk (EBUS), and joint public offerings of debt securities and sukuk (PUB EBUS), the total fund raising in the capital market as of May 31 2023 was IDR 101.35 trillion.

It is different from the banking sector, whose growth is observed to be slowing down. Like the growth in third party funds (DPK), which in total only grew slightly 6.82% as of April 2023. Meanwhile credit growth also weakened to 8.08% on an annual basis (yoy) as of April 2023.

Likewise with the growth of contracted life insurance. Namely, general insurance premiums which previously had grown above 20% fell to 12.55% as of March 2023. Growth in life insurance premiums also fell to -10.25% in the same period.

Meanwhile, financing receivables as of April 2023 were recorded at 15.13% yoy.

(Zefanya Aprilia/ayh)