2022 State Budget: Fiscal Policy and Structural Reform slide image

2022 State Budget: Fiscal Policy and Structural Reform

0 IDR Tn 200 180 160 140 120 100 80 60 40 20 2016 Source: Financial Service Authority (OJK) 2017 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 Total of securities issuance reached IDR335.8 Tn (YTD) as of 7 December 2021, indicating a more optimistic signal to economic recovery. May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 ■IPO Rights Issue Corporate Bond & Sukuk 40 30 177.70 20 2018 2019 2020 2021* Jul-21 Aug-21 Sep-21 Oct-21 Signs of Recovery in Financial Intermediations Bank loans continue to grow, supported by consumption and working capital loans. Despite still being in the contraction zone, financing growth has steadily improved for the last few months. LOAN In October 2021, Bank loans continued to grow by 3.24% (y-on-y) and 0.08% (m-to-m). Financing growth continued its improving trend in the past few months and grew by -5.50% (y-on-y) in October 2021. YOY IDR Tn 6,000 5,000 4,000 3,000 2,000 1,000 0 Bank Loans YoY Growth (rhs) YOY IDR tn 5657.6 16% 500 12% 400- 8% 3.24% 300 4% 0% 200 -4% 100 -8% 0 Financing Growth (rhs) 10% 5% 359 0% -5.50% -5% -10% -15% -20% 10 97.60 0 60.60 -10 -20 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19. Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Life insurance premium recorded a 7.9% growth (y-on-y) while General & Reinsurance premium recorded a 0.2% growth (y-on-y) in October 2021. Life Insurance Premium Growth General & Reinsurance Premium Growth Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 169 0.2 7.9 Jul-20 Aug-20 Sep-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21
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