#Finance
OJK to regulate dividend distribution in banks
The Financial Services Authority (OJK) intends to regulate the mechanisms of profit distribution and dividend sharing among banks. OJK noted that the dividend payout ratio provided by the national banking industry to shareholders has been excessively high. Ideally, banks should prioritize allocating profits to strengthen their capital.
Mining businesses express concerns over mandatory foreign exchange placement in domestic bank
Coal mining businesses are expressing their concerns about the government's new policy regarding the foreign exchange export earnings (DHE) regulations.
Government obliges exporters to deposit foreign exchange earnings domestically for 3 months at least
The government is preparing several implementing regulation for Government Regulation No. 36 of 2023 concerning Foreign Exchange from Natural Resources Exports (DHE) (PP 36/2023), which replaces Government Regulation No. 1 of 2019.
Government plans debt write-off for small-medium enterprises
President Joko Widodo recently led a closed-door meeting to discuss the restructuring of credits for Micro, Small, and Medium Enterprises (MSMEs).
OJK plans to increase minimum paid-up capital requirement for insurance companies
The Financial Services Authority (OJK) is set to introduce new regulations regarding the minimum capital requirements for insurance and reinsurance companies, both conventional and Sharia-compliant.
Risk of greenwashing increases as environmentally-conscious projects flourish
The practice of greenwashing poses a threat amidst the trend of green or environmentally-conscious financing. Many asset management companies and banks enhance their image as providers of green financing in order to attract new customers.
Bank Indonesia ready for rupiah redenomination despite experts warn of economic risks and challenges
Bank Indonesia (BI) expressed its readiness to redenominate the Rupiah. Despite this, there are dangers of redenomination of the economy if not prepared. Several experts have shed light on the issue.
Bank Central Asia allocates IDR 8.7 trillion Capex for new data center
The largest privately owned PT Bank Central Asia Tbk (BCA) allocates Capital expenditure (Capex) of IDR 8.7 trillion (US$ 583.7 million) in 2023 for a new data center infrastructure.
P2P lending faces growing concerns over non-performing loans
The Financial Services Authority (OJK) reported a significant increase in non-performing loans (NPLs) for over 90 days from fintech P2P lending platforms. As of October 2022, the NPLs had risen to IDR 1.42 trillion (US$ 95.3 million), a 140.78% increase from from the previous year of IDR 593.44 billion.
Danamon, MUFG to invest US$ 100 million in Garuda Fund
PT Bank Danamon Indonesia Tbk and MUFG Bank announced a placement of US$ 100 million in a Venture Fund focusing on Indonesia called the MUFG Innovation Garuda No. 1 Limited Investment Partnership, or Garuda Fund.
Pertamina Geothermal Energy eyes to raise IDR 9.78 trillion from IPO
PT Pertamina Geothermal Energy (PGE), a subsidiary of state-owned oil and gas giant company PT Pertamina, expects to earn up to IDR 9.78 trillion (US$ 657.92 million) in fresh funds from its Initial Public Offering (IPO) in early February.
Top 10 must-have fintech apps and services in Indonesia
Financial technology (fintech) companies have rapidly grown in Indonesia, offering a multitude of innovative apps and services. Such services transform the way consumers manage their finances. The country's fintech industry has offered a wide range of options that provide fast, convenient and affordable financial solutions which range from e-wallets to P2P lending.