Papua's Financial System Stability Grows Positively

The Financial Services Authority (OJK) of the Provinces of Papua and West Papua stated that the condition of financial system stability until the third quarter of 2021 was still maintained with performance that continued to grow positively.
 
Head of the OJK Office for Papua and West Papua Provinces, Adolf Fictor Tunggul Simanjuntak in Jayapura, Wednesday (12/22), said this condition was reflected in the credit growth rate in Bumi Cenderawasih as the Covid-19 pandemic began to be controlled and economic activity increased.

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"Banking sector credit distribution in October 2021 in Papua Province again increased by IDR 1.5 trillion or 4.89 percent (yoy) and in West Papua Province it grew by IDR 1 trillion or 7.41 percent (yoy)," said Adolf.

According to Adolf, the realization of credit in Papua Province and West Papua Province was recorded at Rp. 31.94 trillion and Rp. 14.66 trillion, respectively. "The ratio of non-performing loans (NPL) of banks in West Papua Province increased slightly from 2.51 percent in October 2020 to 2.70 percent in October 2021 and the gross NPL ratio of banks in Papua Province from 2.46 percent to 2.89 percent. " he said.

In addition, guarantee companies experienced an increase in total assets of IDR 22 billion or 41.77 percent (yoy) with an increase in outstanding guarantees of IDR 38 billion or 68.68 percent (yoy) and total investment of IDR 18 billion or 38.94 percent (yoy). ) in Papua Province for the January-October 2021 period. "Furthermore, P2P lending fintech during the January to October 2021 period recorded an increase in outstanding financing of IDR 10 billion (68.97 percent) in Papua Province and IDR 5 billion (74.91 percent) in West Papua Province," said Adolf.

Meanwhile, receivables from finance companies continued the improvement trend by growing by Rp. 426 billion or 45.38 percent (yoy) in Papua Province and by Rp. 168 billion or 23.74 percent (yoy) in West Papua Province.

SOURCE: https://www.republika.co.id/berita/r4ixm2457/stabilitas-sistem-keuangan-papua-tumbuh-positive