VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

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)

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)

Indonesian President Joko Widodo urged the Indonesian National Police, Attorney General's Office, Corruption Eradication Commission (KPK), and the government's internal monitoring agency to bolster synergy and cooperation, particularly in the wake of the current crisis.

"I command the ranks of the National Police, attorney general's office, Corruption Eradication Commission (KPK), and the government's internal oversight institutions to continue to strengthen synergy and cooperation," the president noted in his address while leading the virtual commemorative ceremony to observe the 74th anniversary of the National Police Day (Bhayangkara Day) from the State Palace in Jakarta on Wednesday.

The head of state appealed to all agencies to help expedite the implementation of the COVID-19 handling program and supervise the utilization of its budget.

Widodo drew attention to the high funding allocation of Rp695.2 trillion for handling the COVID-19 crisis and hinted at it being further increased if the need arises.

"Prevention must be prioritized. Do not wait until a problem surfaces," the president noted.

The head of state affirmed that despite the National Police’s current focus to help deal with the COVID-19 crisis, its strategic agenda should always be borne in mind.

"The National Police must continually strive to totally reform itself and always work on self-improvement to become more professional and modern. Transform all weaknesses into strengths," the president emphasized. (ANTARA)

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)