October 2017 1st Week

17 november 2017

Categories : IR Weekly Review

    • MACRO
      • The World Bank suggests that countries with urbanization levels in the East Asia and Asia Pacific region can learn in countries that are successful in implementing inclusive urbanization. The World Bank's Vice President for East Asia and the Pacific, Victoria Kwakwa, said that countries such as Japan, South Korea and Singapore have proven that they capable of creating room for higher economic growth. "Three countries like Japan, South Korea and Singapore proved able to implement urbanization so as to create high economic growth," Victoria said in a teleconference at the World Bank Office of Indonesia, Jakarta, Tuesday (3/10/2017).

      • China's economic growth began to recovered and contributes to the correction of prices for some domestic commodities. Senior Deputy Governor of Bank Indonesia (BI) Mirza Adityaswara explained, at a time when China's economy grew to 10%, Indonesia would be blessed. This is marked by the high price of coal, palm oil (CPO), and steel which are exported to China. However, when the Chinese economy decreased to 6%, coal and other prices also fell. Currently, China's economy has entered a trend of recovering so as to grow at the level of 6.7% -6.8%. Although it is not possible to repeat the glory day when China's economy perched at 10% but this is able to correct the price of commodities. "China is now growing at 6.7-6.8%, starting from the price of coal, CPO, steel, will the economy grow back to 10-12%, I don’t think so." said Mirza in Jakarta on Tuesday (3/10/2017).     

      • Review : 

        China's economic impact affects three important parts of the Indonesian economy. The three parts are trade, finance, and commodity prices. Indonesia's relationships with China are 3 channels namely trade, financial, and commodity price channel.

    • MICRO
      • Bank Indonesia said the bank's annual credit growth during August 2017 rose to 8.4 percent (yoy) from July 2017 which grew by 7.9 percent (yoy). However, the Working Capital Credit (KMK) for the community which is still growing slowly, according to the Money Supply Analysis of Bank Indonesia, said Executive Director of BI Communication Department, Agusman in Jakarta, Friday (29/9/2017). He said that investment credit rose by 6.8 percent (yoy) or IDR 1,123 trillion, consumption credit grew 10.1 percent (yoy) by IDR 1,316 trillion, while KMK grew slowly to 7.3 percent (yoy) or IDR 2,057.3 trillion in KMK as of August 2017, manufacturing industry credit slowed to 4.6 percent (yoy) and construction sector to 28 percent (yoy).

      • The Financial Services Authority (OJK) and other stakeholders develop national strategies in the context of strengthening the empowerment of consumers and the community of financial service users. Members of the Board of Commissioners of OJK for Education and Consumer Protection, Tirta Segara, in a national seminar said the strategy mainly concerns the field of literacy and financial inclusion. "Without literacy, people can’t take advantage of access to financial services and have potential problems when they already have access, and people who do not understand will not be comfortable, therefore financial inclusion will not work effectively," he said at the Bank Indonesia Complex, Jakarta, Wednesday (4/10/2017). Tirta explained that the government has launched a blueprint for the Indonesian National Strategy of Financial Literacy (SNLKI) as an effort to make the program of financial literacy improvement structurized and systemized.

      • Review :

        POJK 76/POJK.07/2016 on Literacy Improvement and Financial Inclusion in the Financial Services Sector for Consumers and/or the community is needed to coordinate the efforts of financial service business actors in enhancing public understanding and trust in using financial products and services.

      • PT Bank Tabungan Negara Tbk (BTN) supports financing for the construction of apartments or dormitories for students at various campuses and universities in Indonesia. The construction of this tower is one of BTN's concern for education activities in Indonesia. "The tower or dormitory for student can be purchased or rented by the student's parents and it is certain to guarantee this drug-free tower, we work with BNN," said President Director of BTN Maryono who is also Chairman of Alumni Family Association (IKA) Dipenogoro University (UNDIP) after inaugurating the committee of UNDIP in Central Java period 2017-2021 in Semarang, Saturday (30/09/2017).

      • PT Bank Rakyat Indonesia Tbk (BRI) together with Ministry of Administrative Reform and Bureaucracy Reform (KemenPAN-RB) began to realize the employment digitalization in the work environment of KemenPAN-RB. BRI and KemenPAN-RB launched Join Development to develop e-Government program and multi-function identity card of KemenPAN-RB. This synergy is held in an effort to realize the digital country agency, futuristic, and modern in providing services to the public. The launching was attended by Minister of KemenPAN-RB Asman Abnur, Vice President Director of Bank BRI Sunarso, and Director of Risk Management of Bank BRI Kuswiyoto as well as officials within the Ministry of PAN-RB and other ministries/institutions. "We are ready to support the Ministry of KemenPAN-RB in creating a more modern employee affair management digitalization and public service oriented through the development of e-government applications and multi-functional identity cards," said Kuswiyoto in his official statement in Jakarta on Wednesday (4/10/2017).

      • Review : 

        Financial institutions also support bureaucratic reform through a reliable Information Technology and able providing comfort to the public through real time online data rates. It is in accordance with the spirit and objectives of bureaucratic reforms which being promoted by the government Joko Widodo.

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