02
July

Domestic banking industry remains robust: Perbanas


National Bank Association (Perbanas) chairman Kartika Wirjoatmodjo. (ANTARA/Citro Atmoko)

The domestic banking industry has fared relatively well and has remained strong in the midst of the pandemic, as reflected by several indicators, according to the National Bank Association (Perbanas).

The capital adequacy ratio (CAR) of banks as of April this year stood at 22.03 percent, and the ratio of non-performing loans (NPL) remained low at 2.89 percent (gross) and 1.13 percent (net), Perbanas chairman Kartika Wirjoatmodjo said in a statement received on Wednesday in Jakarta.

“The CAR in April, 2020 was indeed lower than (at) the end of 2019, but a CAR of 22 percent shows (the banking industry is in) good condition," Wirjoatmodjo said.

Meanwhile, the ratio of liquid/non-core deposit (AL / NCD) and liquid / DPK (AL / DPK) tools as of April was pegged at 117.8 percent and 25.14 percent, far above the respective thresholds by 50 percent and 10 percent, he said.

Wirjoatmodjo said that to tide over the current challenging situation, the banking industry requires strong capital.

Therefore, banks have been striving to maintain capital adequacy above a predetermined threshold.

This is certainly a common concern for maintaining financial system stability, he said. Therefore, he added, Perbanas appreciates the efforts made by the Financial Services Authority (OJK) to strengthen the national banking industry by encouraging large investors, who are able to ensure the sustainability of banking in Indonesia.

According to Wirjoatmodjo, the banking industry is facing a challenging situation, in terms of liquidity issues, sluggish credit demand, the ability of debtors to repay loans, and the issue of sustaining profitability in face of margin pressures.

However, Perbanas sees the regulator and the government have tried to overcome these problems by offering a series of relaxations and formulating a number of necessary policies, he noted.

As an association of industry players, continued Wirjoatmodjo, Perbanas has also been quite involved in providing input.

He said he feels the tradition needs to be maintained because, to face difficult situations, intense communication and strong coordination between all stakeholders is needed. (ANTARA)

02
July

Sugar production in Indonesia has entered its peak season and is expected to reach 540 thousand tons in June-August, according to the Agriculture Ministry.

The ministry's director general of plantations, Kasdi Subagyono, said sugar production is expected to reach 430 thousand to 530 thousand tons in June-July, and increase to 540 thousand tons by August.

"In August, it will increase to 540 thousand tons and start to decline from September onwards. This will cover our sugar demand," Subagyono said during a hearing with Commission IV of the House of Representatives, which is overseeing agriculture, plantations, forestry, maritime, fisheries, and food affairs, in Jakarta, on Wednesday.

According to Subagyono, limited domestic sugar production during March and May had prompted the commodity's price hike.

As sugar production has entered its peak season, he said, sugar price is expected to drop.

In May-June, the ministry recorded a downward trend in sugar price, although it still exceeded the ceiling price of Rp12,500 per kg.

Between May 4 and June 26, 2020, prices declined by 15.8 percent, from Rp18,000 to Rp15,000 per kg, Subagyono said.

The increase in sugar price was also affected by uneven distribution due to the imposition of large-scale social distancing (PSBB) in some regions to curb COVID-19 transmission.

However, the Agriculture Ministry, through its Food Security Agency, has continued to conduct market operations to stabilize the sugar price. (ANTARA)

02
July

The Indonesian Central Bureau of Statistics (BPS) shifted several business processes in conducting surveys to accrue and calculate data on the most recent economic developments.


"The challenges are almost similar to those being experienced by other statistics offices owing to the application of large-scale social restrictions (PSBB)," BPS Head Suhariyanto remarked during a press conference in Jakarta on Wednesday.

Suhariyanto noted that the BPS had begun gathering information from sources without relying on face-to-face interviews and instead conducting them telephonically or via e-mail and other online platforms.

"Data gathering through face-to-face interviews was halted in compliance with the health protocols, as the respondents would be reluctant to meet," he pointed out.

The BPS adopted this method to collect data for publications on big data review against the COVID-19 impact and the socio-demographic survey in connection with the impact of the pandemic.

A similar approach will also applied by the bureau to complete the census data of citizens in September 2020 conducted through the online means.

"For continuation of the census, we will totally scrap face-to-face interviews, as we will provide questionnaires to the neighborhood heads, particularly for respondents that have yet to participate in the online method," he explained.

Suhariyanto further expounded that such method of data gathering was more effectual, as it lowered costs, especially at a time when the BPS had re-directed some of its budget for handling the COVID-19 pandemic.

"We also conduct several online trainings that result in extraordinary efficiency," he stated. (ANTARA)

02
July

Indonesia reported 1,385 cases of the novel coronavirus disease and 789 recoveries on Wednesday, taking the country's COVID-19 case count to 57,770 and the total number of recoveries to 25,595, a government spokesperson said.

The data was recorded as of 12 p.m. on Wednesday, and was based on the examination of 21,738 specimens, said government spokesperson for COVID-19 handling, Achmad Yurianto, at a press conference in Jakarta on Wednesday.

The government has so far carried out swab tests on 825,636 specimens using Real-Time Polymerase Chain Reaction and Molecular Rapid Test methods, he added.

"From the specimen examinations, it was revealed that there were an additional 1,385 confirmed cases on Wednesday, taking the total (number) of positive cases to 57,770," he informed.

Meanwhile, 58 more patients succumbed to COVID-19 on Wednesday, taking the total death toll to 2,934. The number of patients under surveillance stood at 13,296, while 45,192 people were placed under monitoring.

On Wednesday, DKI Jakarta confirmed 217 new cases and 168 recoveries, while East Java added 185 new cases and 187 recoveries, Yurianto said.

Meanwhile, Central Java reported a total of 173 new cases and 100 recoveries, North Maluku recorded an additional 147 cases and 7 new recoveries, and South Sulawesi registered 130 new cases and 52 recoveries.

In all, there were 16 provinces that reported less than 10 new cases, and five provinces recorded no new cases, Yurianto said.

A significant number of recoveries were recorded in Bali, where 34 new COVID-19 cases were detected and 62 patients recovered from the virus. There were 10 new cases in Banten and 21 recoveries, while East Kalimantan saw 7 new cases and 15 recoveries.

In Maluku, 18 COVID-19 patients made a complete recovery, while 7 more people were diagnosed with the virus, and in West Papua, there were 3 new positive cases and 12 recoveries.

Some areas reported no new cases. Jambi registered no fresh cases and eight recoveries, Central Sulawesi four recoveries, North Kalimantan two recoveries, and Gorontalo three recoveries.

Yurianto said that all 34 provinces in Indonesia have reported COVID-19 cases, with 451 districts and cities impacted by the pandemic, indicating an increase in impacted areas by two compared to the previous day. (ANTARA)

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