Desember 2016 1st week

09 december 2016

Categories : IR Weekly Review


  • MACRO
    • The European Central Bank (ECB) made speculation over monetary policy more accommodatively this week. It is only If the Italian referendum on constitutional reform on Sunday. But one of economist said the condition is not that simple. "The market believes we basically expect QE (quantitative easing). Infinity in Europe and may only in the imagination, "said Elga Bartsch, economist in Morgan Stanley. Bartsch recognize that the rhetoric was coming from ECB President. Draghi suggests that this view is rather simple. "There is a strong possibility of him (Draghi) and a number of executive board members at the ECB. But at the same time, the views of the board becomes more widespread and among central bankers seem to be a bit more diverse, "he explained.

    • International Finance Corporation (IFC) together with the FSA is committed to support the financial industry of pro-environment. "World’s effort to adapt to the global objectives through the development of innovation to support programs to protect the earth, eradication of poverty and ensure prosperity for the world we ought to try in the next 15 years," said Chairman of the Board of Commissioners FSA, Mulliaman D Hadad in the International Forum of Sustainable Finance in Nusa Dua, Bali, on Thursday (01/12/2016). Hadad said the FSA cooperation with IFC in line with the objectives of sustainable development goals (SDGs), which since 2016 has been implemented by member states of the United Nations Development Program (UNDP). The world agreed to pursue the SDGs targets terminate Poverty and hunger by 2030.

    • Review:

      Quantitative easing policy is monetary policy issued by the central bank, where the central bank ‘pump’ the money into banks and financial institutions under it to encourage them to lend so much money. This policy can be done by buying corporate bonds, long-term securities, shares and other securities from banks and other financial institutions.

  • MICRO
    • Bank Indonesia (BI) is planning to implement a policy of Statutory Reserves (GWM) in average start in the middle of next year. The policy is to replace GWM with fixed rate which is currently set at 6.5 percent. Executive Director of Economic and Monetary Policy of Bank Indonesia, Juda Agung said, the application of the GWM averaging will not be directly fully-apply. According to him, GWM will be applied partially of which 20 percent of the paid-banking GWM will be calculated with an average of once every two weeks. Or in other words, GWM averaging, members that will contribute 1.5 percent of the total GWM amount to 6.5 percent. On the other hand, the banks still have to meet the rest of the 4.5 percent with fixed scheme per day.

    • The Financial Services Authority (FSA) is currently reviewing the concept of publishing "green bond" or environmentally friendly bonds to capital markets firms. "In Indonesia, we are trying to look at the concept or structure such as what is suitable to be published by the company in Indonesia." Said Member of the Board of Commissioners / Chief Executive of the Capital Market Supervisory FSA, Nurhaida after giving a speech at the meeting "Sustainable Banking Network" (SBN) in Nusa Dua, Badung regency, Bali, on Friday (02/12/2016). According to him, in some countries, mainly developed countries had a lot of issuing bonds that give attention to the environment. He explained that "green bond" is a bond that meets the elements of environmental sustainability.

    • Review:                                                                                                                                     

      With GWM Averaging, Banking becomes flexible. The goal is for banks so they can manage liquidity on a daily basis. On the other hand, the central bank can control the amount of money in circulation.

  • BANKING
    • State Savings Bank (BTN) held a lottery program Serba Untung BTN which able to reap the view through the increase in current accounts and savings accounts (CASA). Serbu BTN is a continuation of a similar successful lottery program held in last year, this program was held from September, 1st 2016 to August 31st, 2017 with a total prize reaches IDR 18 billion. Director of Consumer Banking of BTN Handayani said lottery program is an appreciation of the company to the customer of Batar Savings. In addition, this program also held to increase the collection of savings while strengthening the funding structure of Bank BTN.

    • PT Bank Mandiri (Persero) disbursed loans amount to IDR 7.84 trillion by the end of October 2016 for the development of various ports in Indonesia. This realization increased 72 percent if it compared with the same period last year. "The port sector will be a main sector of Bank Mandiri as well as comprehensive banking solutions such as payment systems. Not only the credit. "Said Director of Retail Banking of Bank Mandiri Tardi Wednesday (07/12/2016). Tardi detailing, several port projects obtain credit from Bank Mandiri this year, including the development of Belawan Container Terminal Phase II, and the construction of multi terminal in Kuala Tanjung, as well as development projects in the area of Makassar New Port Pelindo IV.

    • Review

      Currently the majority of banks in Indonesia were compete to increase their CASA ratios in various ways which are attractively packaged and the interest which are still competent to continue improving the structure of their third-party funding.

Disclaimer : This document is for informational purposes only and obtained from a variety of reliable sources, but is not a guarantee the accuracy or completeness and should not be relied on completely. The above conditions may be changed at any time. Forbidden to rewrite anything without written permission from The East Java Regional Development Bank