Indonesia`s financial service industry remains in good condition: OJK

Jakarta (ANTARA News) - The Financial Service Authority (OJK) said the countrys financial service industry was still in good condition until February, 2015 with adequate stability marked by growing trade at domestic stock and bond market.

OJK commissioners in a monthly meeting on Thursday said financial performance and risk profile of financial service agencies were also still in normal.

OJK chief executive for supervision of stock market Nurhaida cited that the domestic stock market continued expansion in February .

"This was shown in the increase of index and a decline in yield of the state bonds, as well as foreign net buy both in share and bond markets," Nurhaida told reporters.

She said among the factors contributing to the growth of the domestic stock and bond markets were global sentiments such as expectation that the Fed would not raise its fund rate earlier, Greek bail out agreement , quantitative easing in euro zone and improvement in Indonesia economic fundamental.

Meanwhile, the financial condition of the financial service agencies remained good, she said.

She pointed to increase in capital adequacy ratio (CAR) of banks to 21.01 percent in January, 2015 up from 19.87 percent in December, 2014

"In line with the improvement in expectation for economic growth, bank credits and financing are expected to increase in 2015," OJK deputy for banking supervision Irwan Lubis said.

In insurance industry investment adequacy in life insurance and loss insurance was fairly good, Irwan said.

"In financing industry gearing ratio of finance companies was 3.54 times well below the maximum level of 10 times," OJK chief executive for supervision of non bank financial agencies Firdaus Djaelani said.

 (AS/f001)
(T.SYS/A/H-ASG/F001)

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