"A significant growth was also recorded in the country`s investment sector."
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono asked national banks to maintain their good performance and help keep national economic stability.

"We all know that economic policy with real integrated fiscal and monetary will have effective impact on growth stability and efforts to enhance job opportunities," the president said when he received the executives of the National Banks Association (Perbanas) at his presidential office here on Wednesday.

He said that the national economic stability now was important not only for the nation but also for the international economy.

"Our philosophy is that we have to improve our economy in the first place before making any contribution (to the world)," he said.

The head of state said he was happy with the fact that he was able to meet and communicate with Perbanas executives and to hear input from them.

The Perbanas executives during the meeting was lead by Sigit Pramono in the accompany of a number of executives during the meeting.

The president was accompanied by Chief Economic Minister Hatta Rajasa, Finance Minister Agus Martowardojo and Cooperatives and Small and Medium Enterprises Minister Syarief Hassan.

Based on Bank Indonesia (BI/the central bank)`s data, the growth of national banks` profit reached Rp92.8 trillion, up 23 percent per December 31, 2012 compared with that in the previous year which stood at Rp75 trillion.

The total credits provided by general banks in 2012 reached Rp2,725 trillion, up from Rp2,200 trillion in 2011.

Actually, Indonesian banking industry performed well in 2012, both in quality and quantity amid the threat of global crisis.

According to Zulkifli Zaini, president of state owned lender PT Bank Mandiri Tbk, the country`s largest bank in assets, said the performance was reflected by credit growth which averaged 23 percent in the first nine months of 2012.

Third party funds held by banks also grew 20 percent a year, Zulkifli told lawmakers in a hearing here recently.

He said banking assets grew 19 percent to Rp4,009 trillion in September from Rp3,372 trillion a year before.

He said the banking expansion was healthy with improvement in credit quality as indicated by a decline in non performing loan to 2.1 percent far below the maximum limit of 5 percent set by Bank Indonesia.

Meanwhile, the capital adequacy ratio (CAR) rose to 17.3 percent from 16.1 percent by the end of 2011, well above the minimum limit of 8 percent set by the central bank, he added.

He said the performance of the banking industry reflects a healthy condition of the country`s economy, which grew 6.34 percent in the first nine months of 2012.

"A significant growth was also recorded in the country`s investment sector," he said.

He said productive credits made up 70 percent of total credits provided by banks in 2012.

Investment credits grew 30.3 percent and working capital credits increased 22 percent, he added.

Meanwhile, Felia Salim, the president of another state-owned lender Bank Negara Indonesia (BNI), the country`s fourth largest bank in assets, said the country`s banking industry has not yet been fully fledged.

The level of Indonesia`s financial inclusion is relatively low with only 20 percent of Indonesians above 15 years in age having bank account, Felia said.

One of the causes is big gap in economic and infrastructure development that resulting in inequitable distribution of banking services, the BNI president said.

Felia said around 53 percent of 3,444 bank offices owned by 120 banks in the country are in Java.
(Uu.A014/B003)

Editor: Priyambodo RH
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