June 2017 1st Week

09 june 2017

Categories : IR Weekly Review


    • MACRO
      • The World Bank continues concerns about rising debt and deficits including in developing countries, as the possibility of a sudden rise in interest rates or heavier lending conditions may put pressure on. It is delivered after projecting that global economic growth will strengthen to 2.7% in 2017. World Bank Chief Economist Paul Romer said at the end of 2016, government debt exceeded the level in 2007 by more than 10% of GDP points in more than half of the market as well as developing countries. Plus the fiscal balance going worst from 2007 by more than 5% points of GDP in one third of these countries, Monday (5/6/2017).

      • Eurozone economic growth maintained at the highest level for six years, according to a survey it was influenced by the positive performance of the service and manufacturing sectors. IHS Markit, which compiles the data, says there are two major economy country, Germany and France, the biggest growth drivers. The employment data also supported the strengthening of business activity across the eurozone in May, Tuesday (6/6/2017). UK Prime Minister Theresa May earlier revealed evidence of a stronger currency and is expected to continue in the second quarter of this year. IHS Markit noted business activity across the eurozone was at 56.8 for May, unchanged from the previous month. The service index slipped slightly, while manufacturing remain unchanged. Index seems already above the 50-mark which divides growth from contraction since mid-2013 ago.

      • Review : 

        It’s necessary to give extra attention to the importance of a healthy global trading network for national banks. Recent activity in some emerging markets is a development for growth in their region and the global economy.

    • MICRO
      • Bank Indonesia (BI) predicts that there will be a surge in transactions through non-cash payment system during Ramadan and Lebaran period 2017. The surge in transactions through the BI Real Time Gross Settlement (BI-RTGS) system is estimated to range from 5 to 10 percent in volume and 9 percent -14 percent in nominal terms. "By using the range (growth), the transaction volume of the BI-RTGS payment system is projected to reach 45,251 transactions, and nominally reaches around Rp539 trillion," added BI Deputy Governor Sugeng, Friday (6/2/2017). Meanwhile, the increase in transactions through the Bank Indonesia National Clearing System (SKNBI) is estimated to reach 4 percent-5 percent in volume or in the range of 577,903 transactions. Then, nominally rose 8 percent-10 percent or about IDR 14.6 trillion.

      • The Financial Services Authority (OJK) and the Central Bank of Philippines or Banco Sentral ng Pilipinas (BSP) agreed to cooperate. Both are exploring cooperation by signing a Letter of Intent (LoI) which is also an early marker of bilateral agreements in the implementation of the ASEAN Banking Integration Framework (ABIF). The Letter of Intent contains an OJK and Banco Sentral ng Pilipinas agreement to begin the process of drafting a bilateral agreement within the framework of ABIF. So it is expected to open opportunities for the Indonesian banking sector to expand into the Philippines. Chairman of the Board of Commissioners of OJK Muliaman Hadad said the preliminary agreement is a significant step to mark integration efforts in the financial services sector in ASEAN, especially the banking sector within the ABIF framework.

      • Review :

        Cooperation is part of the regulators' efforts to continue to drive the development of the financial services sector. So that this sector can grow healthy, sustainable, and can contribute more in improving the national economy and people's welfare.

    • BANKING
      • Bank Mandiri distributes IDR 1.5 trillion financing to PT Indonesia Infrastructure Finance (IIF) in support of accelerating infrastructure development in Indonesia. In addition to financing in the form of loans, Bank Mandiri also provides other financial support ie treasury line facility with a limit of US $ 50 million. The facility will be used for hedging on IIF foreign exchange transactions. The signing of the financial support agreement was conducted by EVP Government & Institutional I Bank Mandiri M. Arifin Firdaus and IIF President Director Arisudono Soerono and witnessed by Deputy President Director of Bank Mandiri Sulaiman A. Arianto and Director of Government & Institutional Bank Mandiri Kartini Sally at Plaza Mandiri Jakarta, Wednesday (31/5/2017).

      • PT Bank Negara Indonesia (Persero) Tbk (BNI) is ready to distribute around 1.3 million farmers' cards (Kartu Tani) in East Java which are beneficiaries of fertilizer subsidies. This step is one form of BNI support to the Food Security program in Indonesia which became one of the government's focus and became one of the programs, Nawacita. With the distribution of Farmers' Cards in East Java, BNI ensures fertilizer subsidies will be channeled to the farmers exactly, precisely, timely, and precisely prices. The realization of Farmer Card Distribution was carried out in Sumenep, Madura, East Java, on Tuesday (June 6, 2017) to 120,000 farmers. Attending the occasion were the Minister of Agriculture RI Andi Amran Sulaiman, Minister of State-Owned Enterprises (SOE) Rini Soemarno, Sumenep Regent KH A Busyro Karim, President Director of BNI Achmad Baiquni, Director of Institutional Relations & Transactional Banking BNI Adi Sulistyowati, and directors of BUMN Such as PT Pupuk Indonesia, Bulog, PT Pertani, PT Sang Hyang Seri, PT RNI, and PT PPI.

      • Review : 

        The role of banks is very important for the economy of Indonesia, the bank also has a role in terms of financial stability, inflation control, payment systems, and monetary authorities. Some banking products also support the Government's work program.

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