TEMPO.CO, Jakarta - The Head of the Insurance, Guarantee, and Pension Fund Supervision Executive (PPDP) at the Financial Services Authority (OJK), Ogi Prastomiyono, said that the 3 million housing program and the free nutritious meals program (MBG) present opportunities for the growth of the insurance industry.

"The existence of various government priority programs, such as the 3 million housing development program and the free nutritious meals program, has the potential for the insurance industry to contribute," said Ogi Prastomiyono in Jakarta on Wednesday, January 29, 2025.

He said that his team had discussed with insurance associations about their support for government programs. "In general, the entire insurance industry is ready to support all government programs," he stated.

The Head of the Financing Institution, Venture Capital, Microfinance Institutions, and Other Financial Services Supervisory Executive (PVML) at OJK, Agusman, said that government programs could help boost the performance of the financing sector since motor vehicle sales are expected to remain sluggish this year. 

"Financing in the housing sector is expected to be a potential segment with the government's 3 million housing program," he said.

The Head of the Banking Supervision Executive at OJK, Dian Ediana Rae, said that to support the construction of 3 million housing for low-income communities (MBR), his team consistently coordinates the distribution of housing loans with relevant institutions and agencies. 

"In this case, the provision of credit to the public is based on the principles of risk management, taking into account the risk appetite and prudence principles of each bank, so it is not solely based on the quality of credit facilities in the financial services information system (SLIK)," he explained.

He said that OJK with the government and other regulators, will continue to monitor various indicators of the national financial system to drive sustainable growth and stability in the domestic economy through various policy mixes or stimuli.

As of November 2024, he said that the banking liquidity condition was considered adequate, with the liquidity ratio to non-core deposits (AL/NCD), liquidity ratio to third-party funds (AL/DPK), and liquidity coverage ratio (LCR) at 112.94%, 25.57%, and 213.07%, respectively. "Furthermore, the Loan to loan-to-deposit ratio (LDR) of 87.34% is considered sufficient to anticipate an increase in loans," said Dian.

Editor's Choice: Indonesian Govt to Add 230 Kitchen Units for Free Nutritious Meal Program in February

Click here to get the latest news updates from Tempo on Google News