REPUBLIKA.CO.ID, JAKARTA -- The state owned Deposit Insurance Agency (LPS) said the country's banking industry has performed well giving strength to the country's economy.
"In our view the country's economic condition is excellent," chief commissioner of LPS C Heru Budiargo told reporters after a meeting with President Joko Widodo here on Thursday, July 23.
Heru said his conclusion was based on the condition of premiums LPS has received from banks in the past 10 years against the amount of insured funds of its bank clients. "Funds LPS has collected 50 trillion IDR in premiums over the past 10 years as against insurance payment of only 4.5 trillion IDR to bank clients. That indicated the country's economic condition is good," Heru said.
He said the country's economic fundamentals are also good with bank capital adequacy ration (CAR) of 20.5 percent. "It is good. Gross non performing loan (NPL) is around 2.45 percent with net NPL at 1.42 percent. The bank reserves, therefore, are also good," he said.
In addition, loan to deposit ratio (LDR) is not more than 90 percent or around 87.9 percent. He also pointed out that no bank has faced problem despite the protracted external pressure.
President Joko Widodo, accompanied by Finance Minister Bambang Brodjonegoro met with the board of commissioners of LPS at the presidential office.
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