Bank Lending to Securities Increases by 5 Percent

Bank placements in securities during the first semester of 2017 increased by 5.39 percent compared to the end of 2016. Data from the Indonesian Financial Services Authority's (OJK) Indonesian Banking Statistics shows that bank funds in securities increased by Rp 46.38 trillion to Rp 906.9 trillion. Of this amount, more than 60 percent, or Rp 544.35 trillion, was invested in bonds. The remainder was invested in Bank Indonesia Certificates (SBI), Government Treasury Bills (SPN), and other securities.

Bank funds invested in bonds at the end of June 2017 decreased by 3.13 percent compared to the end of last year; similarly, investments in SBI also decreased by 50.54 percent. However, investments in other securities recorded a significant increase of Rp 98.92 trillion, or 57.8 percent. Similarly, placements in SPN increased by Rp 13.6 trillion, or 43.51 percent, reaching Rp 44.99 trillion from its December 2016 position.