DIGIVESTASI - President Joko Widodo (Jokowi) seems to be worried about the end of his term. None other than the situation of the Indonesian economy. He pointed out that Indonesia's economic growth rate is still around 5%, but the money supply is getting thinner. According to Jokowi, the problem arose because the Ministry of Finance (Kemengkeu) and BI issued too many securities: Government Securities (SBN), Bank Rupiah Securities (SRBI), and Bank Indonesia Foreign Exchange Securities (SVBI).

"Even if it is allowed, what I tell BI and SBN is not to buy too much, so that the real sector looks better than last year." The Jakarta office was mentioned earlier. For reference, based on BI data, M2 position in December 2023 amounted to IDR 8,824.7 trillion, an increase of 3.5% year-on-year. This growth rate is still far from the growth in September which reached 6% year-on-year. 

One of the factors is the increase in third party funds (DPK). In December 2023, deposits increased by 3.8% from the previous year to IDR 8,234.2 trillion, while loans increased by 10.38% from the previous year to IDR 7,044.8 trillion. 

In fact, the growth rate of deposits was higher than November 2023 (3.04%) and October 2023 (3.43%). However, if you look at the situation in December or the end of the year, this growth is the lowest since 1999, or in the last 24 years.

Separately, Bank Indonesia Governor Perry Warjiyo said the liquidity capacity of banks to support credit growth is still relatively large. "Banks have more than enough liquidity," he said. He ensured that the policy direction in 2024 would still maintain adequate liquidity for banks. The goal is to continue to secure credit sales and financing. Furthermore, the liquidity easing policy has been implemented since 2023 and will continue until 2024, he said. However, he cautioned that the abundant liquidity should not only be used to buy or store Government Securities (SBN). 

"As long as banks are willing to take back their SBN holdings without being stranded, we make sure the liquidity is more than enough," Perry said during the launch of the Indonesia Economic Survey 2023 in Jakarta in January last year. " he said.

Taswin Zakaria, President Director of PT Bank Maybank Indonesia Tbk (BNII), said that his party focuses on buying SBN, SRBI, and SVBI because liquidity is needed for credit expansion. "Actually, we do not focus on buying SRBI SVBI because we really need existing liquidity for lending expansion. So we think it's the right direction," Taswin said.  
 

He said Maybank Indonesia is targeting a loan growth rate of 10-12% in 2024. As of September 2023, Maybank Indonesia disbursed loans and sharia loans worth Rp 112.42 trillion, an increase of nearly 1% year-on-year. Securities in the same period increased 12.87% from the previous year to IDR 29.43 trillion. 

Based on the latest data from the Financial Services Authority (OJK), securities held by banks reached IDR 1,970 trillion as of November 2023, an increase of 5.4% year-on-year. Therefore, the overall growth rate of the securities industry is still lower than lending. 

In details, securities of state-owned banks decreased by 6.1% year-on-year to IDR 756 trillion. In the same period, total private bank loans increased by 10.5% year-on-year to IDR 2,573 trillion (as of November 2023). In the same period, private bank securities further increased to reach IDR 963 trillion, an increase of 12.6% year-on-year. 

Private banking deposits in November 2023 reached IDR 3,666 trillion, an increase of 3.7% year-on-year. Furthermore, Regional Development Bank (BPD) loan growth reached 7.9% year-on-year, and securities increased by 1.2% year-on-year. 

The growth divergence between lending and securities holdings occurred in overseas-based bank branches. The banking group's loan distribution declined by 9% year-on-year, while securities increased by 53% year-on-year. However, foreign bank deposits shrank by 6.9% year-on-year to IDR 245 trillion.

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