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View all search resultsThe government has promised strong gross domestic product growth for the remainder of this year and onward as it expects higher consumption, underpinned by increased private sector activity and government spending.
Bank Indonesia reveals that Rp 2,372.1 trillion in approved bank loans remains unused as of August, warning that sluggish credit expansion, with just 7.56 percent year-on-year growth, could weigh on GDP growth.
While the OJK has issued a regulation to make licensing easier for private pawnshops, the government has yet to address the issues of governance, oversight and whether or not to integrate this lucrative but marginalized business so it can truly contribute to growth.
While acknowledging the inherent trust demonstrated by foreign banks in committing to such a large amount, and without collateral at that, economists have questioned the urgency of the move and cautioned about potential risks such as mismanagement and project selection.
Despite a decade of tightening rules on what is allowed and what is not in Indonesia’s burgeoning peer-to-peer (P2P) lending industry, the fintech segment meant to improve financial inclusion is still riddled with risks for both lenders and borrowers.
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