Foreign exchange reserves have fallen six months in a row along with the rupiah exchange rate depreciation. This will likely continue until the end of the year.
Banks are required to connect with at least two switching companies to support the ecosystem of payment transactions. Foreign switching companies will then cooperate with local companies.
Multifinance companies are utilising technology owned by fintech firms to speed up the loan approval process and reduce non-performing financing.
President Joko Widodo is worried about the continued weakening of the rupiah and deficit increase due to reduced supply of foreign exchange.
OJK is formulating rules and giving bigger opportunities for stock offerings through digital platforms. This is alternative funding for SMEs and start-ups that require capital.
The OJK is to add to the terms and conditions for fintech P2P lending firms to protect consumers and reduce default risk. This will also allow for the filtering of the flood of cheap funds from China.
Banks are facing tightening funding liquidity in the market, with middle category banks having the highest liquidity risk with a loan-to-deposit ratio of 99.87 percent.
JP Morgan and Singapore’s DBS Bank say the Indonesian government bond market is now feasible for investors due to good economic fundamentals and attractive bond yields.