tranforming financial sectors to attract the … … · stable growth, driven by strong household...
TRANSCRIPT
Wimboh SantosoChairman of Indonesia Financial Services Authority
INDONESIA FINANCING INVESTMENT FORUM
TRANFORMING FINANCIAL SECTORS TO ATTRACT THE INVESTMENT
MACRO-ECONOMIC AND FINANCIAL SECTORS CONDITION
3
GLOBAL ECONOMIC SLOWDOWN Various prominent institutions have made downward adjustments to global growth forecast
Previously projected at 2.6% (June’19)
3.7
3.3
3.6
3.6
3.0
3.4
2.7
2.9
3.1
3.3
3.5
3.7
3.9
2013 2014 2015 2016 2017 2018 2019 2020
WEO Oct'18 WEO April'19
WEO Oct'19
Downward revision of global economy projection in 2019 & 2020 by WEO
2019 Projection 2020 Projection
Oct’18 Apr’19 Oct’19 Δ Oct’18 WEO
Δ Apr’19 WEO Apr’19 Oct’19 Δ April’19
WEOWorld Output 3.7 3.3 3.0 -0.7 -0.3 3.6 3.4 -0.2AE 2.1 1.8 1.7 -0.4 -0.1 1.7 1.7 0.0US 2.5 2.3 2.4 -0.1 0.1 1.9 2.1 0.2Japan 0.9 1 0.9 0.0 -0.1 0.5 0.5 0.0
EMDEs 4.7 4.4 3.9 -0.8 -0.5 4.8 4.6 -0.2China 6.2 6.3 6.1 -0.1 -0.2 6.1 5.8 -0.3India 7.4 7.3 6.1 -1.3 -1.2 7.5 7.0 -0.5Brazil 2.4 2.1 0.9 -1.5 -1.2 2.5 2.0 -0.5South Africa 1.4 1.2 0.7 -0.7 -0.5 1.5 1.1 -0.4
ASEAN-5 5.2 5.1 4.8 -0.4 -0.3 5.2 4.9 -0.3Indonesia 5.1 5.2 5.0 -0.1 -0.2 5.2 5.1 -0.1
3.0%(revised in Sept’19)
2.5% (revised in Oct’19),
previously estimated at 3.2% (Jul’19)
(revised in Oct’19), 2.9% previously 3.2% (May’19)
4
Reserve Bank of India25 bps to 5.15%
The Central Bank of The Russian Federation
50 bps to 6.5%
cut its benchmark 7-day reverse repo rate by another 25 basis points to 5.00 percent and has now cut it by 100 points following cuts in July, August, September and October in 2019
Bank Indonesia
Reserve Bank of Australia25 bps to 0.75%(3rd cut rate)
Bangko Sentral ng Pilipinas25 bps to 4%
The Fed25 bps 1.5-1.75%.
25 bps to 5% (4th cut rate)
Responding to the economic slowdown, majority of countries have adopted more accommodative monetary policy
MAJORITY OF COUNTRIES HAVE ADOPTED MORE ACCOMMODATIVE MONETARY POLICY
Besides, several countries also imposed non-conventional policies suchas Quantitative Easing by buying bonds through secondary market
Stable growth, driven by strong household consumption and stable inflationINDONESIA ECONOMIC CONDITION REMAINS ROBUST
3.13
0.00
1.00
2.00
3.00
4.00
5.00
-7
-2
3
8
13
18
Feb-
17
Apr-
17
Jun-
17
Aug-
17
Oct
-17
Dec-
17
Feb-
18
Apr-
18
Jun-
18
Aug-
18
Oct
-18
Dec-
18
Feb-
19
Apr-
19
Jun-
19
Aug-
19
Oct
-19
%IHK (rhs) Vol Food Adm Price Inti (rhs)
% %126.70
0
5000
10000
15000
20000
0.0020.0040.00
60.0080.00
100.00120.00
140.00
Feb-
15
Jun-
15
Oct
-15
Feb-
16
Jun-
16
Oct
-16
Feb-
17
Jun-
17
Oct
-17
Feb-
18
Jun-
18
Oct
-18
Feb-
19
Jun-
19
Oct
-19
Cadangan Devisa Nilai Tukar (rhs)Reserve Exc. Rate
Modest foreign exchange reserves (Oct 19 : USD126.70 billion)Inflation remains under control within 3,5% +-1% (Oct 19 : 3.13%)
5.01 4.885.03 5.07 5.17 5.07 5.05 5.02
2
2.5
3
3.5
4
4.5
5
5.5
6
-6
-4
-2
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019
Processing Industry Trade AgricultureConstruction Mining TransportationFinancial Services Information and Comm. Gov. Adm.Growth PDB, yoy (%)
Indonesia Economic Growth has been maintained above 5% led by household consumptions
Poverty level decreased and reached the lowest level since 1998
6
Open unemployment rate showed a downward trend(Feb-19: 5.01%)
Gini ratio improved
Poverty Level in million Poverty Level in % of total population
In the recent years, open unemployment rate has been decreasing, poverty has been declining and economic inequality has been narrowing
IMPROVEMENT IN INDONESIA
Men Women
JCI and Return Net Buy/Sell Stocks Net Buy/Sell Govt Bonds
18 Nov ‘19Net Sell
18 Nov 2019Net Sell
Govt Bond YieldAdequate FX Reserves
Source: Bloomberg, IBPA, CEIC
Declining yield102,4 bps ytd
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0,1y 4y 8y 12y 16y 20y 24y 28y
Yield (%)
18-Nov-19
22-Aug-19
28-Dec-18
170.33
57.1
-2.59
1.37
-0.31 -0.89
174.62
2017 2018 30-Au g-19 30-Sep-19 31-Oct-19 18-Nov-19 ytd-22.59
16.17
-39.87-50.75
-0.07
-0.60
-0.43-4.12
44.02
20152016
20172018
30-Sep-19
31-Oct-
19
18-Nov-19
mtd ytd
120.289.500119.680.410 119.944.630
111.480.920
118.595.120 118.400.130
4,593 5,297
6,356 6,195 6,123
-12.11
15.33
19.99
-2.53 -1.16
-15
-10
-5
0
5
10
15
20
25
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2015 2016 2017 2018 18-Nov-19
JCI (rhs) Return
FINANCIAL MARKET OVERVIEWDomestic financial market still resilient
8
CAPITAL ADEQUACY REMAINS STRONG AND
LIQUIDITY REMAINS AMPLE
2.72
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
201
5
201
7
Jun/
18
Aug/
18
Oct
/18
Dec
/18
Feb/
19
Apr/
19
Jun/
19
Aug/
19
Banking CARLife and General Insurance RBC
above the threshold (120%)Multifinance Gearing Ratio
threshold 10%23.38
21.64
15
17
19
21
23
25
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
CAR % (rhs) Tier I %
667%
321%
250%
290%
330%
370%
300%
360%
420%
480%
540%
600%
660%
720%
Jan
-18
Ma
r-1
8
Ma
y-1
8
Jul-
18
Se
p-1
8
No
v-1
8
Jan
-19
Ma
r-1
9
Ma
y-1
9
Jul-
19
Se
p-1
9
RBC Asuransi Jiwa
RBC Asuransi Umum (RHS)
Liquidity is ample Liquid Asset to NCD around 93.9% (as of 6 Nov 2019)RIM (Intermediation Ratio), LDR, AND LFR
93.91
19.70
5
10
15
20
25
40
60
80
100
120
10
-M
ay
20
-M
ay
30
-M
ay
9-Ju
n
19
-Ju
n
29
-Ju
n
9-Ju
l
19
-Ju
l
29
-Ju
l
8-A
ug
18
-A
ug
28
-A
ug
7-Se
p
17
-Se
p
27
-Se
p
7-O
ct
17
-O
ct
27
-O
ct
6-N
ov
%% AL/NCD (LHS) AL/DPK (RHS)
threshold AL/NCD=50%
threshold AL/DPK=10%
BANK LOANS GREW…
7.89
7.47
93.76
84.00
86.00
88.00
90.00
92.00
94.00
96.00
98.00
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep-
17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep-
18
Nov
-18
Jan-
19
Mar
-19
May
-19
Jul-1
9
Sep-
19
Kredit DPK LDR (rhs)
Credit Growth by Economic Sector (yoy)
5.94%
12.84%
6.82%
7.89%
0%2%4%6%8%
10%12%14%16%18%
Nov
-15
Jan-
16M
ar-1
6M
ay-1
6Ju
l-16
Sep-
16N
ov-1
6Ja
n-17
Mar
-17
May
-17
Jul-1
7Se
p-17
Nov
-17
Jan-
18M
ar-1
8M
ay-1
8Ju
l-18
Sep-
18N
ov-1
8Ja
n-19
Mar
-19
May
-19
Jul-1
9Se
p-19
Working Capital Investment Consumption Total
9.33%
-5.44%
5.59%
26.27%
4.25%
10.55%
8.28%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep-
17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep-
18
Nov
-18
Jan-
19
Mar
-19
May
-19
Jul-1
9
Sep-
19
Yoy (%) Agriculture MIning Processing Industry
Construct ion Retail Transportation and Communication
Households
Credit Third Party Fund
Third Party Fund, Credit (yoy) and LDR Credit of Invesment remains the main driver
RISKS REMAIN MANAGEABLE
Banking NPL by Economic Sector
Multifinance NPF remains managable
10
Banking NPL remains below the threshold
2.66
1.15
0.00
1.00
2.00
3.00
4.00
Sep-
15
Dec
-15
Mar
-16
Jun
-16
Sep-
16
Dec
-16
Mar
-17
Jun
-17
Sep-
17
Dec
-17
Mar
-18
Jun
-18
Sep-
18
Dec
-18
Mar
-19
Jun
-19
Sep-
19
% NPL Gross NPL Net
1.46
3.10
3.55
3.86
6.07
2.16
2.18
3.65
0
2
4
6
8
10
Sep-
15
Dec
-15
Mar
-16
Jun
-16
Sep-
16
Dec
-16
Mar
-17
Jun
-17
Sep-
17
Dec
-17
Mar
-18
Jun
-18
Sep-
18
Dec
-18
Mar
-19
Jun
-19
Sep-
19%
Pertanian PertambanganKonstruksi PerdaganganAkomodasi Transportasi dan KomunikasiRumah Tangga Industri Pengolahan
2.66%
2.50%
6.75%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Sep-
16
No
v-1
6
Jan
-17
Mar
-17
May
-17
Jul-1
7
Sep-
17
No
v-1
7
Jan
-18
Mar
-18
May
-18
Jul-1
8
Sep-
18
No
v-1
8
Jan
-19
Mar
-19
May
-19
Jul-1
9
Sep-
19
TotalPembiayaan KonvensionalPembiayaan Berdasarkan Prinsip Syariah
3.16%3.47%
3.18%2.96%
3.25% 3.15% 3.17%
2.71% 2.71% 2.82% 2.66%
1.31%1.47%
1.16%0.93%
1.17%0.97% 1.08%
0.69% 0.62% 0.55% 0.51%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q42018
Q12019
Q22019
Q32019
NPF Gross NPF Netto
TotalConventional FinanceSharia Finance
Multifinance NPF (Sharia and Conventional)
AgricultureConstructionAccommodationHouseholds
MiningTradeTransportation & Comm.Processing industry
FINANCIAL SECTOR PROFITABILITY PERFORMANCE REMAINS HIGH AND STABLE
11
PROFITABILITYRETURN ON ASSETS BY BUKU NET INTEREST MARGIN BY BUKU
11
2.48
2.0
2.2
2.4
2.6
2.8
Sep-
15Ja
n-16
May
-16
Sep-
16Ja
n-17
May
-17
Sep-
17Ja
n-18
May
-18
Sep-
18Ja
n-19
May
-19
Sep-
19
ROA
4.90
4.2 4.4 4.6 4.8 5.0 5.2 5.4 5.6 5.8
Sep-
15
Feb-
16
Jul-1
6
Dec-
16
May
-17
Oct-1
7
Mar
-18
Aug-
18
Jan-
19
Jun-
19
NIM91.24
68 72 76 80 84 88 92 96
Sep-
15
Feb-
16
Jul-1
6
Dec-
16
May
-17
Oct-1
7
Mar
-18
Aug-
18
Jan-
19
Jun-
19
BOPO
2.48
1.20
1.53 1.78
3.10
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
ROA BUKU 1 BUKU 2 BUKU 3 BUKU 4
4.90 4.88 4.81
3.97
5.48
-
1.00
2.00
3.00
4.00
5.00
6.00
NIM BUKU 1 BUKU 2 BUKU 3 BUKU 4
13.3%
472.4%
-19.6%-50%
50%
150%
250%
350%
450%
Sep-
15Ja
n-16
May
-16
Sep-
16Ja
n-17
May
-17
Sep-
17Ja
n-18
May
-18
Sep-
18Ja
n-19
May
-19
Sep-
19
Pendapatan BungaPendapatan Operasional Selain BungaPendapatan Non-Operasional
Commercial Bank Commercial BankCommercial Bank
RETURN ON ASSETS OPERATING COST/REVENUENET INTEREST MARGIN
Interest earningNon-Interest earningNon-operational earning
POSITIVE OPINIONS FROM RATING AGENCIES
2018 2019Apr Jan Feb March Apr May
Moody’s: upgraded the rating at Baa2/Stable
Fitch: affirmed the rating at BBB/ Stable JCR: affirmed the rating at BBB , revised the outlook to positive
S&P: upgraded the rating at BBB/Stable
R&I: affirmed the rating at BBB/ Stable
Indonesia’s sovereign credit rating has stable outlook from key rating agencies
Upgrade on Indonesia Sovereign Credit Rating
Source: World Bank
Indonesia has progressed significantly in promoting its business environment as the EoDB index ranking for 2019 has climbed 18 places to 73 from its previous rank of 91 in 2017. Indonesia increasedits score by 1.42 points to 67.96 from 66.54 last year.
CHALLENGE TO BOOST THE ECONOMY GROWTH
Along with policies to overcome the challengesCHALLENGES IN INDONESIA ECONOMY
Maintainconsumerspurchasing power
Transformingmining economy tomanufacturing-based economy
Seizing theopportunity fromtrade war
Overcomingexternalimbalances
Inflation Rate needs to
remain low
Five priorities: manufacturing, agrobusiness, fishing, mining, and tourism.
Simplify investment bureaucracy
Export/import policy, tourism,
economic diplomacy
Entrepreneurship Index ranks 94/137 countries in 2018
EntrepreneurshipIndex is still low
Efforts undertaken by OJK relatedto Financial market pillar:ü Apply mandatory portion of
financing to productive sectorü Support the development of
fintech startupü Carry out financial consumer
education programs,
Declining competitiveness
Maintained the same score as last year, Indonesia GCI rank declined from 45/140 to 50/141
GLOBAL COMPETITIVENESS INDEX (GCI)
Sumber:http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
1. Indonesian GCI dropped position from 45/140 in 2018 to 50/141 in 2019.
2. Indicator related to the authority of OJK is thepillar of Developed Financial Market. Effortsundertaken by OJK:a) Apply mandatory portion of financing to
productive sector, for:§ Bank: BUKU I at least 55%, BUKU II at
least 60%, BUKU III at least 65%, and BUKU IV at least 70% of overall financing.
§ Multifinance: at least 10%b) Support the development of fintech startupc) Carry out financial consumer education
programs, develop BWM, BUMDES / BUMADES, enhance the role of TPAKD.
Global competitiveness rankings of Asia-Pacificcountries/regions in 2019
Trend of Indonesia GCI Ranking
EASE OF DOING BUSINESS IN INDONESIA
Sumber: http://www.doingbusiness.org/content/dam/doingBusiness/country/i/indonesia/IDN.pdf
Economy Overall Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Minority Investors
Paying Taxes
Trading across Borders
Enforcing Contracts
Resolving Insolvency
Singapore 2 3 8 16 21 32 7 8 45 1 27Malaysia 15 122 3 4 29 32 2 72 48 33 41Thailand 27 39 67 6 66 44 15 59 59 35 24China 46 28 121 14 27 73 64 114 65 6 61Brunei Darussalam 55 16 55 31 142 1 48 84 149 67 64Vietnam 69 104 21 27 60 32 89 131 100 62 133Indonesia 73 134 112 33 100 44 51 112 116 146 36Philippines 124 166 94 29 116 184 132 94 104 151 63Cambodia 138 185 179 141 124 22 110 137 115 182 79Myanmar 171 152 81 144 136 178 185 126 168 188 164
OJK’S STEPS TO IMPROVE EODB INDONESIA:a. Revising OJK regulation concerning Right
Issueb. Widening the scope of reporter in the credit
reporting system/SLIK (Financial Information Services System) to all rural banks and finance companies
c. Credit bureau to not only provide credit scoring service but also providing more credit information that has value added
EoDB stagnated at 73 this year
INDONESIA ENTREPRENEURSHIP INDEX
Indonesia
GEI Score: 20.7Rank 94
GEI Score: 52.7Rank 27
GEI Score: 32.7Rank 58
Malaysia
ThailandGEI Score: 27.4
Rank 71
Filipina
GEI Score: 24.1Rank 84
Singapura
GEI Score: 23.2Rank 87Vietnam
3.10% 3.30%
5.00%6.00%
14.00%
Indon
esia
Vietna
m
Thail
and
Malays
ia
adva
nced
coun
tries
OJK POLICIES DIRECTIONS
BOOST FINANCING FROM FINANCIAL INSTITUTION
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Commerci
al Ban
ks
Insure
rs & S
ocial
Sec
urity
Agenc
ies
Multifina
nce C
ompa
nies
Pensio
n Fun
ds
Indon
esia
Eximba
nk
Pawns
hop
Equity
Mark
et Cap
italiza
tion
Outstan
ding C
orpora
te Deb
t Sec
uritie
s
Outstan
ding G
ov't D
ebt S
ecuri
ties
Mutual F
unds
53.8%
8.6%3.4% 1.9% 0.8% 0.4%
46.8%
16.6%
2.8% 3.2%
INDONESIA FINANCIAL INSTITUTIONS ASSETS/GDP
To finance infrastructure projects and development of leading sectors: Tourism,
Fishery, Manufacture (Textile, Automotive), Agribusiness, and Mining sector
Bo o s t e x p o r t a n d r e d u c i n g i mp o r tPENGEMB
ANGAN
SEKTOR-
SEKTOR
UNGGULA
N
20
Bo o s t e c o n o mi c g r o w t h & e c o n o mi c e q u a l i t y
J o b c r e a t i o n & b u s i n e s s o p p o r t u n i t y ( SMEs )
Su p p o r t Su s t a i n a b l e De v e l o p me n t Go a l s
NEW ENGINE OF GROWTH
Downstream hilirization is necessary to boost the economy
PROMOTE NEW ENGINE OF GROWTHOJK build collaboration with the Regional Government
with the Regional Government, Association of Business Actors, Financial Industry
i n d e v e l o p i n g R e g i o n a l E c o n o m i c P o t e n t i a l A r e a s
NEW EXPORT-ORIENTED ECONOMIC GROWTHOJK issued regulations to accelerate economic growth
Enable start-up company and small
business to raise fund in capital market (through
IPO, equity crowdfunding)
Relaxing legal lending limit (BMPK) and risk
weighted assets (ATMR) for priority sectors
Enhance the role of securities companies
to the regional economy and
expanding access for the public to invest in
the capital market
LICENSING
CONSUMER PROTECTION
FINTECH SURVEILLANCE
REGULATION
Market conduct supervision for P2P lending
- Enforces the law for protecting consumer from illegal fintech.
- As of Sep 2019, 1.350 illegal fintech has been stopped.
Fully functioning fintech association (association will
enact code of ethics and code of conduct)
Three tiers licensing: Listed, Registered and Licensed
- Prudential based supervision - Regulatory sandbox.
Fintech center (OJK Infinity) for knowledge sharing
SUPERVISION
KNOWLEDGE SHARING FINTECH
ECOSYSTEM
22
ENCOURAGE THE TECHNOLOGY APPLICATION IN FINANCIAL INDUSTRY
POTENTIAL RISKS OF DIGITAL
REVOLUTION
C o n s u m e r p r o t e c t i o n C y b e r s e c u r i t y
D a t a p r i v a c y& m o n e y l a u n d e r i n g
D i s t o r t i o n o n L a b o r M a r k e t
Technology driven
POTENTIAL RISKS OF DIGITAL REVOLUTION
Improving supply, demand and financial market infrastructures
SUPPLY SIDE
DEMANDSIDE
INFRASTRUCTURE
Bonds and SukukPrivate
Fund (RDPT)
Infrastructure Fund (DINFRA)
Stocks
Equity Crowdfunding
Hedging Instrument for
Government Bond.
Indonesia Government Bond
Future (IGBF)
Electronic public offering (E-IPO)
Integrated database system (DWH, SIPETRO)
PROVIDE LONG TERM FINANCINGIntegrated licensing
system (SPRINT)
Consumer Protection & Expand Investor Base
Disgorgement fund
Indonesia Securities Fund
(Lembaga Pendanaan Efek
Indonesia)
Regulatory & Physical Infrastructure
Education Regional Securities Company
E-book building
Accelaration of settlement process
T+3 into T+2Expand Single Investor
Identification (SID)
Development of XBRL for issuers
Municipal Bonds (OBDA)
Central Java, West Java, DKI
Jakarta
Islamic Capital Market
Expand distribution channels: selling
mutual fund in minimarket and
branchless banking agents
Real Estate Investment Trust
(REITs)Asset Backed
Securities (EBA)
EBA-SP (Surat Partisipasi)
Green Bonds & Green Sukuk
Project Bond
* SID as of September 2019grew 42,8% ytd
24
E-Proxy & E-voting RUPS
FINANCIAL DEEPENINGIndonesia’s scores are still below neighboring countries
OJK INITIATIVES IN IMPROVING FINANCIAL ACCESSExpand financial access for MSMEs and communities in remote areas
1
2
3
4
5
6
7
8
9
10
Rp115,7 Trillion
Facilitated distribution of Micro credit (82,68% from target Rp141,6 Trillion)
25,8 million participants
Rp29,32
billion (as of September 2019)
53 Micro Waqf Bank
20 BUMDES, 2 BUMR1 BUM-Kampung
1,15 million agents
Rp2,21 trillion
32 Province106 City
350 thousands school21,6 million account
Rp8,76T
Rp31,9 TOJK goes to Campus
Financial ExpoWayang Show
Investment Alert Task Force In 40 areas
138 TPAKD
Village Owned Enterprises
Outstanding Saving
25,8 million customers
Team for Acceleration of Regional Financial Access (TPAKD)
OJK contact center
Branchless Banking
FINANCIAL LITERACY AND INCLUSION
Financial education will be continued to support target 2019
LiteracyINDEX 2016 29,7%
67,8%TARGET
2019 35%
75%I N C L U S I O N
InclusionINDEX 2016
TARGET 2019
Financial customer protection
BUSINESS PROCESS REFORMATION
NBFI REFORM• Implement international standards• Continously improving NBFI reform.
O-BOXmonitoring process of bank transactions
Integrated Registration and License System or SPRINTAn integrated system to process license & registration for banking/capital market/NBFIs products & institution/individual,
DATA WAREHOUSE For banking, NBFI and capital market
B A N K I N G
INDONESIA INVESTMENT PRODUCTS
MORE INVESTMENT
SUFFICIENT GOODS AND
SERVICES FOR DOMESTIC
ECONOMIC GROWTH
STRATEGIES TO MAINTAIN ECONOMIC GROWTH
NEW ENGINE OF GROWTH
PROMOTES INNOVATION
OVERVIEW OF INDONESIA’S FOREIGN DIRECT INVESTMENT
Source: Indonesia Investment Coordinating Board (BKPM)
Q3-20192018
USD9.193,2 mio
USD1.948,8mio
USD881,4mio
USD4.952,8 mio
USD1.023,4mio
USD2.376,5 mio
Q3- 20192018
USD434,0 mio
USD2.011,4 mio
USD220,8 mio
USD1.774,9 mio
Q3- 20192018
USD1.358,0mio
USD943,1 mio
During Jan-Sept 2019, the investment realization in Indonesia has reached IDR 601.3 trillion (increased about 12,3% yoy).As of Q3 2019, the investment realization has achieved about 75.9%% from the 2019 target.
IDR
trill
ion
FDI and DDI Investment RealizationBased on Sector
Source: Indonesia Investment Coordinating Board(BKPM)
During Q3 2019, the investment has been
dominated
by Transportation, Warehouse, and
Telecommuncation (19,1%), Electricity,
Gas, and Water Supply (39,1%); and
Construction (8,2%)
During Q3 2019, the highest investment
realization was situated within Java island:
Jakarta (20%), West Jawa (16,2%), and East
Java (7,2%).
During Q3 2019 – Singapore,
Netherland, and China became 3
largest investors for Indonesia
INVESTMENT REALIZATION PROGRESS
FDI and DDI Investment RealizationBased on Location
FDI and DDI Investment RealizationBased on Country of Origin
OJK in coordination with fiscal authorities haveissued several tax incentives to induce economicgrowth, among others:• Tax relaxation for investment in pioneer industry
that has high value added and externalities,introducing new technologies, and has astrategic implication to the national economy(PP No. 45/2019)
• Tax relaxation for government bond investors(PP No.55/2019)
Incentive to AttractSustainable Finance
Reduction of the industry’s contribution fee:25% from registration and dan registrationstatement fee of green bond issuance
OJK’S SUPPORT TO GOVERNMENT PRIORITIES
Capital Raising
IDR 148,02 trillionFrom 144 IPOs, 43 of them are new issuers
14
38
58
43 42
34 35
28
1511
74
8882
86
15
148.02
0
50
100
150
200
250
300
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 12-Nov-19 in processIPO Right Issue
Debt Securities and Sukuk (EBUS) Capital Raising (IDR Trillion)
INVESTMENT PRODUCTS IN CAPITAL MARKETAlternative financing in capital market
Investment Products and Asset Under Management
Data as of 11 November 2019 unless indicated:* Data as of Sept 2019** since 2018
MUNICIPAL BONDSRepresenting an attractive investment with a low default risk
34
North Sumatera
East Kalimantan
South Kalimantan
West Sumatera
DKI Jakarta
West Java
Central Java
East Java
Bali
South Sulawesi
10 Potential Provinces To Issue Municipal Bonds which
amounted to USD8.69 Billion
Rated by Rating Agencies
Endowment funds is budgeted annually by the local government for principal payments
Providing flexibility in the use of fund
Financial soundness of regional government is assessed by related ministry
Indonesia is committed to deepen its financial market, giving more space for the development of municipal bonds
I N V E S T M E N T S I N I N D O N E S I A M U N I C I P A L B O N D S
Incentives for registration fees from 0.5% to 0.0125% of the value of emissions
OJK simplified municipal bond procedures, but still ensuring sustainability and the ability of the local government to repay its debt
SUSTAINABLE FINANCE
USD9.45 billion(IDR132.7 T)
Accumulated green loan granted
USD 669 million(IDR 9.5 T)
Green bondsissuance of
Government green SUKUK
USD3.2 billion(IDR45 T)
BLENDED FINANCE PROJECTSIn term of blended finance, we are benefiting with strong commitment we have witnessed
from global stakeholders during the last World Bank - IMF Annual Meeting in Bali.
± USD2.46 billion commitment
to finance
33 projectsthrough
blended finance scheme
from various domestic and global stakeholders
6 projectshave just
completedin 2018
9 projectsare in progress
2 projectswill be startedin 2019
16 projectsare being prepared/
drafted
OJK ENCOURAGES INVESTOR TO INVEST IN FINTECH
144 Registered/ Licensed Fintech
P2P Lending
Equity Crowdfunding
Registered Companies 2
IDR
D e c a c o r n
Starts-up Companies
Decacorn1 Unicorn4
Digital Banking
Banks Provided Digital Banking Services
85
THANK YOU