JAKARTA - Monthly Board of Commissioners (RDK) Meetings in September noted that the global and domestic economies are slowly starting to show signs of improvement, as can be seen from the increase in global trade and economic indicators in several major countries in the world, although improvements have not been evenly distributed.
At the domestic level, real sector data, especially the external sector, continued to record positive performance, with government spending, particularly the PEN program, also experiencing an encouraging acceleration. However, uncertainty in financial markets has been seen to increase slightly driven, among others, by the spread of Covid-19 in several countries which has increased again and geopolitical tensions that have increased due to the re-heating of the US-China trade war and uncertainty over Brexit.
Increased uncertainty led to increased volatility on global and domestic financial markets during September 2020. As of September 18, 2020, the stock market and SBN market weakened with the JCI dropping by 3.42% mtd and average yield on SBN rising by 4.9 bps mtd.
OJK is also actively monitoring the management of the placement of government funds in general banking, both in the HIMBARA group of Rp 30 trillion and the BPD group of Rp 11.5 trillion, which in general has shown encouraging progress.
Third Party Funds (DPK) were able to grow at a high level of 11.64% yoy, driven by growth in BUKU 4 DPK which reached 15.37% (yoy). Meanwhile, the insurance industry was recorded to be able to collect an additional premium of Rp 20.5 trillion (Life insurance: Rp 14.5 trillion and general insurance & reinsurance: Rp 6.0 trillion). The risk profile of financial services institutions in August 2020 was maintained at a manageable level with a stable gross NPL ratio of 3.22% and an NPF ratio of 5.2%. (LM)