Indonesia continues to leverage sustainable finance, aligned with the UN Sustainable Development Goals (SDGs), as investor priorities shift towards ESG metrics. The country’s inaugural G20 Presidency in 2022 was a platform for the country to spearhead international progress towards ESG-aligned goals. With a focus on the sustainable energy transition, priorities included a comprehensive taxonomy…
In this Global Platform video, Batara Sianturi, CEO of Citi Indonesia, details the monetary and fiscal outlook for the country and global trends that are impacting all economies. Looking ahead, the institution hopes to attract Indonesia’s unbanked population and cater to the needs of micro-, small and medium enterprises with the help of the national blueprint for payment infrastructure laid out by
– Saudi Arabia sees recentlandmark issuanceof ESG-related sukuk – Key jurisdictions registergrowth insustainable instruments in 2021 – ESG-linked sukuk projected to grow in 2022even as broader sukuk growth moderates Earlier this month Saudi Arabia’s Riyad Bank closed a $750m “sustainability” sukuk (Islamic bond), the latest in a wave of high-profile…
– Fintechs focused on remittances are capturing legacy lenders’ market share – The UN and other bodies are calling for remittance fees to be capped at 3% – Emerging markets have been at the forefront of mobile-first fintech growth – Cryptocurrency is also increasingly disrupting the remittances space A number of remittance-focused financial technology (fintech) start-ups are gaining…
Indonesia’s economy experienced a milder slowdown in 2020 than its ASEAN-5 neighbours, according the IMF’s April 2021 World Economic Outlook, and also fared better than 16 other G20 members. In spite of ongoing Covid-19-related challenges, the IMF expects Indonesia to experience robust expansion from 2021. The digital economy is slated to remain a key driver of growth, owing to the large, consumption-driven…
– Many emerging nations’ central banks are trialling or considering CBDCs – South-east Asia is at the forefront of digital banking and cryptocurrency – Cambodia has launched a CBDC, while several other states are undertaking trials – An East Asian common currency based on blockchain has been proposed The coronavirus pandemic gave rise to a massive acceleration in the spread of digital…
Alongside rising GDP and manageable public debt levels, Indonesia’s banks maintained robust performance in the six months leading to the pandemic. Monetary measures by the central bank to address headwinds in 2020 included lowering the reverse repo rate and purchasing government debt. In spite of challenges, in the first three quarters of 2020 banks sustained a consistent financing-to-assets ratio,…
Interview:Batara Sianturi How would you assess international investor appetite for Indonesian debt and equities in 2020? BATARA SIANTURI: Since late January 2020 investors have taken a cautious stance towards emerging market assets due to concerns regarding the impact of Covid-19 on economic growth. We saw inflows into the bond market in January, but flow has since reversed, with year-todate…
Interview:Jahja Setiaatmadja What is your overall assessment of the key challenges that need to be addressed? JAHJA SETIAATMADJA: If the credit growth rate can be maintained at 10-11%, banks’ liquidity will be sufficient. With the current loan-to-deposit ratio (LDR) at 94%, however, domestic bank liquidity is a concern, with some establishments having LDRs of over 100%. On the credit side,…
Interview:Vincent Iswara How do you foresee the evolution of the cashless payment market in Indonesia? VINCENT ISWARA: At the moment there are more than 100 registered and licensed peer-to-peer lending companies operating across the country. They have an important role to play in creating a financially inclusive society, which is one of President Joko Widodo’s key aims. Approximately 170m…