Bank Indonesia (BI), Financial Service Authority and Indonesia Deposits Insurance Corporation (IDIC) integrated reports of the banking sector into one mechanism - Photo: Special.

JAKARTA (TheInsiderStories)Bank Indonesia (BI), Financial Service Authority and Indonesia Deposits Insurance Corporation (IDIC) integrated reports of the banking sector into one mechanism which will be implemented on Dec 31, the central bank wrote in an official statement on Friday (12/20).

The integration aims to minimize redundant and inconsistent information. As well as, it is expected to be more efficient as banks are used to submit reports to three different regulators.

“The unification of reports also supports the integration of banks data,” BI explained. While in the last decade, the financial authorities urged to have data in more detailed and fast.

The platform to put integrated reports are called There are nine reports which could be submitted to the platform as they are used to be submitted to different regulators.

The reports are commercial bank daily report, commercial bank periodic report, sharia bank periodic report, commercial bank monthly report, sharia bank monetary and financial stability monthly report, commercial bank headquarter report, rural bank monthly bank, sharia rural bank monthly report, and commercial bank financial report.

The integrated reports are highly crucial in the decision making of financial authorities, especially in pursuing financial stability and monetary policy. While Indonesian financial stability in the third quarter of 2019 remained under control, said the Financial System Stability Committee (FSSC).

Finance minister Sri Mulyani Indrawati explained, the financial system remained stable even there was high uncertainty in the global economy that was affected by tensions between the United States (US) and China. The tension led to a decline in trade volume and the slowing of world economic growth followed by weakening commodity prices and inflationary pressures.

From the domestic side, the minister continued, the economic growth was quite good, although the contraction in export performance needed attention because it impacted the performance of household consumption and investment. Indrawati was optimistic that economic growth in the third quarter (3Q) of 2019 could reach 5.05 percent.

The committee also rated, Indonesia’s balance of payments (BoP) to improve in the 3Q of 2019 and foreign exchange reserves are still far above international adequacy standards. The improved performance of the BoP impacted the strengthening of Rupiah.

In addition, said the board, inflation was controlled at a low and stable level within the target of 3.5+1 percent. Maintained economic resilience in turn to supports the financial system stability, said the committee.

Then, the financial system stability was supported by maintained banking resilience, adequate liquidity, and stable financial markets. It was reflected in low capital adequacy ratio and non-performing loan risk.

From the monetary side, the central bank relaxed macro prudential policies by increasing the capacity of bank lending and encouraging loan demand through. In order to boost the momentum of domestic economic growth, the government increased the spending and to implement the priority programs so the state budget is able to provide the optimal impetus for the economy.

The government anticipated the potential widening of the fiscal deficit with several funding options such as from excess budget balance, withdrawing cash loans, and issuing government bonds.

Responding to the downward trend in deposit rates, chairman of the Indonesian Deposit Insurance Corporation (IDIC) Halim Alamsyah reported, in September 2019 the agency lowered the guarantee interest rate at commercial banks and rural banks by 25 bps to 6.5 percent and 9 percent for Rupiah, while foreign exchange will be at 2 percent.

IDIC in the last meeting also decided to hold the guaranteed interest rates at commercial banks and rural banks for Rupiah and for foreign exchange in commercial banks. It was implemented from Sep. 26, 2019 until Jan. 24, 2020.

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