JAKARTA (TheInsiderStories) – Financial Services Authority (OJK) reported in the fourth months of 2020, fund raising through the capital market worth of Rp28.3 trillion (US$1.83 billion) with 22 new issuers. In the pipeline there are 53 issuers that will conduct a public offering with a total indication offering of Rp21.2 trillion, said the agency today (04/30).
In this year, the regulator targeting, total emissions in the stock and bond market to reach Rp200 trillion and 70 issuer become a listed company. Last year, public offering at the local bourse recorded Rp161 trillion and 60 firms listed at the Indonesia Stock Exchange (IDX).
“We are still quite optimistic because last year the public offering in the capital market is Rp161 trillion with 60 companies listed. Our JCI (Jakarta Composite Index) volatility is also quite maintained moved between 6,000 – 6,200,” the chairman, Wimboh Santoso remarked at the Annual Meeting of Financial Industry on Jan. 16.
Year to date, FSA reported, the stock index weakened by 0.9 percent to 4,496, while the government bond market has strengthened with average yields down 19.4 basis points. As April 24, foreign investors’ net sell recorded of Rp11.8 trillion, which stock market Rp7.2 trillion and bond market Rp4.6 trillion, far lower than the March net sell with total amount Rp126.8 trillion.
The agency also reported, the banking loans grew by 7.95 percent compared to same period in 2019 supported by foreign currency loans grew by 16.84 percent. While, the third party funds grew by 9.54 percent.
Banking liquidity and capital are at the same level adequate. But the the insurance industry contracted by 7.51 percent and only collected premiums of Rp17.5 trillion.
Capital adequacy ratio of banks was recorded at 21.77 percent and risk-based the life insurance and general insurance industry capital each 643 percent and 297 percent, above the regulatory threshold of 120 percent.
The risk profile of financial service institutions in March 2020 is also maintained at the level which is controlled with a gross non performing loans ratio of 2.77 percent (net 0.98 percent) and non performing finance ratio of 2.75 percent.
In the midst of the weakening of the Rupiah, the value risk banking exchange can be maintained at a low level as seen from the net foreign exchange ratio of 1.94 percent, far below the stipulated threshold of 20 percent.
The regulator stated, will keep a close watch on stability financial services sector in the midst of the COVID-19, which until April was recorded still in awake condition. This is indicated by the service sector intermediation finance that posted a positive performance and risk profile for the service industry finances remain in control.
Economic data shows that the epidemic has caused significant pressure on the global economy. International Monetary Fund predicts that world economic growth will contract by 3 percent with the growth of emerging markets also projected contracted by 1 percent.
Through a number of anticipatory policies (pre-emptive) and forward looking assessments as reflected in Indonesia’ financial, fiscal and monetary sector stimulus able to control volatility in the financial markets which had risen sharply as the spread of virus increased. With the issuance of the government regulation in lieu of law Number 1 Year 2020, Indonesia becomes one of the few countries whose economy is projected to continue to grow positive in 2020 compared to other countries, the regulator concluded.
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