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Jakarta Post

Maintaining intermediation, liquidity, asset quality amid economic uncertainty

  • Rully Arya Wisnubroto

    Mandiri

Jakarta   /   Wed, September 18 2019   /  02:22 am

The global economy will still be full of uncertainties until next year, and such a situation will have a significant impact on the domestic economy. Some emerging economies, such as Turkey and Argentina, have fallen into recessions, while others like Brazil, Russia and South Korea have recorded a snail-pace economic growth of between 0.9 and 1 percent. We have just revised our economic growth projection for Indonesia to 5.06 percent this year from our previous forecast of 5.22 percent after a weaker-than-expected first half expansion. With the slowing growth of GDP, it is highly possible that loan demand will also weaken and eventually affect the country’s banking industry.The Indonesian banking industry remains broadly stable. Capital ratio is still robust at 22.6 percent as of June 2019, while at the same time, the nonperforming loan (NPL) ratio continued to decrease to 2.5 percent, ...