Does COVID-19 Affect Indonesian Banking Sector during the Beginning Case in Indonesia?

COVID-19 pandemic was firstly hit in Wuhan, China at the end of 2019. As it keeps spreading, it becomes a global pandemic since almost all countries are infected with this corona virus, includes Indonesia with the first case was at the beginning of March 2020. At first, it was all about humanity issues. However, it affects many sectors and at the end of the day, it becomes a serious problem, namely crisis.

The banking industry in Indonesia could handle pretty good. During April 2020, the condition of the banking industry in Indonesia was quite normal, while the economy was predicted to be declined as impacted by the COVID-19 pandemic. As Bank Indonesia (BI) decided to lower the minimum statutory reserve (GWM), it helps the condition of the bank’s liquidity which is quite sufficient. Non-Performing Loan (NPL) itself was conducive because the Financial Services Authority (OJK) conduct restructuring. OJK will always monitor the progress of the banking sector and financial institutions during this pandemic by reviewing the liquidity in the coming 3 months. BI also stated that economic deceleration due to the corona virus would not affect national banking because the current banking condition is way more stable and sturdy compare to the 1998 crisis.

SAHH

Source:

• CNBC Indonesia