The Indonesian Economy and the Role of the Deposit Insurance Corporation in Indonesian Banking Resolutions
During the current pandemic, the Central Statistics Agency (BPS) reported that Indonesia’s economic growth in the first quarter of 2021 was still experiencing contraction of minus 0.74 percent. With this figure, Indonesia’s economic growth has not been able to return to the positive zone, after experiencing four consecutive contractions since the second quarter of 2020 at that time, the Indonesian economy was minus 5.32 percent when compared to the position in the first quarter of 2020, the Indonesian economy in the first quarter. -2021 still contracted 0.74 percent.
Previously, the government predicted a contraction in the first quarter of 2021 in the range of 0.6 percent – 0.9 percent. The achievement of economic growth in the red zone in the first quarter of 2021 shows that it is still in line with government projections. When viewed on a quarterly basis, the economic growth in the first quarter contracted by 0.96 percent.
On the other hand, one indicator that shows that economic growth is still contracting is the performance of bank lending, which in March 2021 still experienced a decline of -3.7 percent on an annual basis. The negative credit growth until March 2021 is a sign that the economy in the first quarter is still weak. To that end, the banking sector has commitments and resolutions in 2021 to overcome these weak economic signals.
One of them is that the sector banking stated that it is ready to implement integrated reporting (BI-ANTASENA ) in July 2021. This commitment was conveyed by banks at the High Level Meeting (HLM) for Communication with BI-OJK-LPS with the banking industry leaders virtually.
BI said that banks have a very vital role in providing data through BI-ANTASENA and in the end play an important role in supporting the formulation of authority policies. OJK said that the implementation of the Integrated Commercial Bank Report (BI-ANTASENA) is in line with the information technology-based supervision strengthening program which is one of the priorities and strategic policies at the OJK. Various efforts have been made by OJK to improve the effectiveness and efficiency of supervision supported by digitization, through the development of information systems in the aspects of regulation, reporting, licensing and supervision.
Meanwhile, the Deposit Insurance Corporation (LPS) said that the provision of up-to-date and comprehensive bank data and information through integrated reporting (BI ANTASENA) is very important for LPS in carrying out the function of deposit insurance and bank resolution. Financial authorities need data and information from integrated reporting in conducting assessments and making policies to maintain the stability of the national financial system. For the banking industry, integrated reporting through one door will make banks more efficient in reporting.