Aldira Sunrise 23 Agustus 2024

Economy: Balance of payments records a USD 0.6B deficit in 2Q24
Indonesia’s Balance of Payments (NPI) recorded a deficit of USD 0.6B in 2Q24, lower than the deficit of USD 6.0B in 1Q24. With these developments, the position of foreign exchange reserves at the end of June remained high at USD 140.2B or equivalent to 6.2 months of financing of imports and payment of government foreign debt, above the international adequacy standard of around 3 months of imports. Meanwhile, BI also noted that the current account deficit (CAD) in 2Q24 was USD 3.0B or 0.9% of GDP, more moderate compared to the deficit of 2.4B or 0.7 % of GDP in 1Q24. (Kontan)
ADMF’s new financing was down 5% yoy on Jul 24
Adira Dinamika Multi Finance (ADMF) recorded a new financing of IDR 22.6T as of July 2024 (-5% yoy). To date, ADMF’s new financing is still dominated by the automotive segment, with 38% for the car segment, 38% for the motorbike segment and the rest being the non-automotive segment. The company expects that the performance of the automotive segment, including new car financing, this year will decline slightly or be flat. However, the company will continue to implement various strategic initiatives such as continuing to selectively expand its business to areas that have high potential, developing non-automotive business such as multi-purpose products, strengthening collaboration with groups to increase customer base, continuing to increase customer retention through better offers and process improvements, along with initiatives to improve cost structures. (Kontan)
BBNI raises credit target this year
Bank Negara Indonesia (BBNI) has raised its credit growth target FY24 to around 10%-12% from the previous 9%-11%. This was due to the company’s fairly rapid credit expansion in 1H24 even though the banking industry faces rising costs of funds. Its outstanding credit as of June 2024 was recorded at IDR 726.97T (+11.7% yoy), supported by the corporate segment of IDR 403.1T (+18.7% yoy) and consumer credit of IDR 132.7T (+15.1% yoy). Meanwhile, the medium segment recorded a decline of 2.2% yoy to IDR 97.7T, and the small segment credit shrank 11.2% yoy to IDR 80T. Apart from that, BNI also revised its net interest margin (NIM) target from the previous 4.5% to only 4% this year. Then, the credit cost target was also revised. This year’s cost of credit target was lowered from the original 1.4% to 1% in line with improving BNI asset quality. BNI’s NPL ratio was recorded to have decreased to the level of 2% as of 1H24, from the level of 2.5% in 1H23. (Kontan)