Below is a list with tagged columns and company profiles.

Today's Headlines Banking

  • Indonesia's Banking Sector Has No Difficulty Facing Economic Turmoil

    Indonesia's banking sector is expected to have no difficulties in coping with current financial turmoil in Indonesia's economy. The country's banking industry is much stronger and healthier now than when the crisis in 1997-1998 or 2008 erupted. There have been reports that a few small banks have used the central bank's overnight lending facility, but various stress tests indicate that the banking sector is strong. Gross non performing loans per June 2013 have been kept below1.9 percent, which is significantly lower compared to previous periods.

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  • A Company Profile of Indonesian State Controlled Bank Tabungan Negara

    Bank Tabungan Negara (BTN) is a state-controlled Indonesian bank that is market leader in the country's mortgage loans sector and is positioned inside the top ten of Indonesian banks in terms of assets and credit loans. The company's business activities focus on three sectors: mortgage loans and consumer banking, housing and commercial banking, and Syariah-banking (Islamic banking). Since the start of 2013, shares of Bank Tabungan Negara have fallen 23.65 percent.

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  • Bank Rakyat Indonesia (BRI): A Leading Indonesian Commercial Bank

    Bank Rakyat Indonesia (BRI): A Leading Indonesian Commercial Bank

    Indonesia Investments has updated the company profile of Bank Rakyat Indonesia (BRI), one of the leading commercial banks in Indonesia and the country's second largest lender by assets. The bank's business focus mainly lies on banking services in micro, small, and medium enterprises (MSME’s). BRI was a state-owned company until 2003 when it listed 30 percent of its shares on the Indonesia Stock Exchange (IDX). It is currently one of the largest Indonesian companies in terms of market capitalization.

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  • Indonesian Banks Post Good Financial Results in Semester I-2013

    Despite a higher benchmark interest rate, higher inflation, a weakening rupiah, and global economic turmoil, four out of seven Indonesian banks that released their financial results over the first half of 2013, have posted double-digit growth. The seven banks show a combined growth of 16.2 percent. Although it is an impressive figure, it is a couple of percentage points lower than last year's performance. Indonesia's economy has slowed down to an annual economic growth of six percent and this has impacted on domestic demand for credit loans.

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  • Indonesian Government: No Need for Panic over Weakening Rupiah

    Although Indonesia's currency, the IDR rupiah, has continued its weakening trend, Indonesian authorities are reassuring the people that this development is not as much caused by domestic factors but rather due to the rising US dollar against other currencies. According to data from Bank Indonesia, the Indonesian rupiah has weakened 5.99 percent to the US dollar in 2013. It is also clear that the central bank of Indonesia has decided to let the rupiah depreciate gradually instead of using its foreign exchange reserves to support the currency.

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  • Indonesian Property Developers not Happy with New Down Payment Rules

    After the central bank of Indonesia placed stricter rules on mortgages for buying property, Indonesian property developers, as well as the Indonesian Real Estate Association (REI), have criticized the new framework as it will impact on demand for property. The central bank implemented new loan-to-value ratios amid concerns that a property bubble may arise. According to the bank, many buyers of apartments are speculators who benefit from sharply rising property prices.

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  • Indonesian Banks Experience Continued Robust Growth in Quarter 1-2013

    The banking sector of Indonesia continues to post impressive double-digit growth amid the country's expanding economy and the people's increasing demand for consumer lending. A number of prominent Indonesian banks, which includes Bank Mandiri, Bank Central Asia, Bank Negara Indonesia, Bank Rakyat Indonesia, and Bank CIMB Niaga, have released strong Q1-2013 performance results. However, as the central bank's interest rate might be raised due to inflationary pressures, profits from lending can decline.

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  • Bank Mandiri and Holcim Indonesia Increase Dividend Payouts

    In the General Meeting of Shareholders it was decided that Bank Mandiri, Indonesia’s largest financial institution by assets, will pay dividend of IDR 199.33 per share to its shareholders. Total dividend that will be paid amounts to IDR 4.65 trillion (US $479.4 million), which equals about 33 percent of the bank's net profit in 2012. Bank Mandiri, which is 60 percent owned by the Indonesian government, reported a 26.6 percent increase in net profit last year.

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  • Bank Central Asia Posts Limited Growth in Net Profit for 2012

    Bank Central Asia (BBCA), Indonesia’s largest lender by market value and second largest bank by assets, posted net profit of IDR 11.72 trillion (US $1.2 billion) in 2012, meaning an 8.3 percent increase from last year's result. This growth is limited compared to net profit of its main competitors Bank Mandiri that posted 26.6 percent growth in 2012, and Bank Rakyat Indonesia (BRI) that posted a 22.8 percent growth in net profit.

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  • Bank Mandiri Posts 26.6 Percent Growth in Net Profit to IDR 15.5 Trillion

    Bank Mandiri, Indonesia’s largest bank by assets, reported net profit of IDR 15.5 trillion (US $1.6 billion) over 2012, implying a 26.6 percent increase compared to 2011. Profit growth was fuelled by increase in net interest income, which increased to USD 27.5 trillion (US $2.85 billion), up from IDR 23.6 trillion in the previous year, and a growth in fee-based income of 2.4 percent. Total outstanding loans at the bank rose 23.7 percent to IDR 388.8 trillion (US $40.3 billion).

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Latest Columns Banking

  • Life of an Expat in Indonesia: Some Experiences with Indonesian Banks

    Life of an Expat in Indonesia: Some Experiences with Indonesian Banks

    If you move to Indonesia for a longer period – either for work or just for living – you will most likely want (or need) to open a bank account at a local bank (or a foreign bank that has a branch in Indonesia). After all, if you continue to use a foreign bank account, then it will involve relatively high bank charges each time you withdraw money from the automated teller machine (ATM) in Indonesia, or when you conduct an international transaction (online banking).

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  • Widodo Wants Indonesia's Banking Sector to Boost Credit Growth

    Widodo Wants Indonesia's Banking Sector to Boost Credit Growth

    At a special occasion at the Presidential Palace in Jakarta, Indonesian President Joko Widodo urged local banks to become more aggressive in terms of lending as credit disbursement in Indonesia's banking sector only reached IDR 4,782 trillion (approx. USD $349 billion) in 2017, hence growing by only a modest 8.3 percent year-on-year (y/y), thus unable to provide an optimal boost to domestic economic growth.

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  • Dutch Queen Maxima Visits Indonesia to Monitor Financial Inclusion Program

    Dutch Queen Maxima Visits Indonesia to Monitor Financial Inclusion Program

    The Queen of the Netherlands, Maxima, visited Indonesia between 11-13 February 2018 to monitor the progress of Indonesia's Financial Inclusion Program, a program that was launched in August 2016 during Maxima's last visit to Indonesia. Hence, during her latest visit, the Dutch Queen came in her role as the United Nations Secretary-General's Special Advocate for Inclusive Finance for Development.

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  • Telkom Satellite Error Causes Problems at Indonesian ATMs

    Telkom Satellite Error Causes Problems at Indonesian ATMs

    Since Friday (25/08) many Indonesians are having trouble to use ATMs (for withdrawing money and conducting various payments). Last week the Telkom-1 satellite started to suffer technical difficulties as a shift on the satellite's pointing antenna disrupted transponders. Considering most of Indonesia's major banks use this satellite, owned by Telekomunikasi Indonesia, for their telecommunication network, thousands of ATMs - hence millions of Indonesians - are affected.

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  • Listed Companies Indonesia: Bank Mandiri to Conduct Stock Split

    Listed Companies Indonesia: Bank Mandiri to Conduct Stock Split

    Bank Mandiri, one of Indonesia's leading financial institutions, plans to conduct a stock split in order to enhance investor interest by making its stocks more affordable and liquid for retail investors. However, the state-controlled lender is still studying whether to opt for a 2-for-1 stock split or a 3-for-1 split. Bank Mandiri is one of Indonesia's blue chip stocks that ranks among the biggest 10 companies in terms of market capitalization on the Indonesia Stock Exchange.

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  • Mining in Indonesia: Concern about High Non-Performing Loan Ratio

    Mining in Indonesia: Concern about High Non-Performing Loan Ratio

    The non-performing loan (NPL) ratio in Indonesia's mining and excavation sector has risen drastically over the past year. Moreover, there seems few room for an improvement of the NPL ratio in this sector on the short term because mining and excavation companies are expected to remain amid tough conditions in the remainder of the year. The NPL ratio is a key indicator for measuring bad loans.

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  • Moody's & IMF Positive about Indonesia's Banking Sector

    Moody's & IMF Positive about Indonesia's Banking Sector

    Both Moody's Investors Service and the International Monetary Fund (IMF) released positive reports on Indonesia's banking sector. While Moody's changed its outlook on Indonesia's banking sector from stable to positive, the IMF said Indonesia's banking system is strong enough to cope with relatively slow economic growth and a rise in bad loans.

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  • Minimum Threshold for Indonesia's "Bank Openness Law" Revised

    Minimum Threshold for Indonesia's "Bank Openness Law" Revised

    The government of Indonesia listened to the criticism that emerged after it decided to set a rather low threshold for bank accounts that are to become subject to the automatic bank information exchange program. Through Finance Ministry regulation PMK No. 70/PMK.03/2017 Indonesia's tax authorities obtain access to information on accounts held at financial institutions, including bank accounts. This new regulation makes it possible to check whether tax payers indeed fulfill their tax obligations.

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  • Which Bank Accounts Are Checked by Indonesia's Tax Authorities?

    There exists some resistance against the Indonesian government's recently announced regulation that gives tax authorities access to information on accounts held at financial institutions, including bank accounts. The regulation aims to contribute to a more transparent financial system as well as to boost the government's tax revenue realization (tax evaders will need to be more careful now authorities can monitor private and corporate bank accounts).

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  • Indonesia's Salim Group Wants to Build a "New Bank Central Asia"

    Indonesia's Salim Group Wants to Build a "New Bank Central Asia"

    The Salim Group, one of Indonesia's biggest conglomerates (owning leading companies in various sectors of the Indonesian economy), has high ambitions in the nation's banking sector after having acquired a majority stake in Bank Ina Perdana in early March 2017. For the first time in 19 years the conglomerate, founded by Sudono Salim in 1972, is back in Indonesia's banking industry.

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