2017年-世界发展银行全球_Republic_of_Indonesia_Financial_Sector_Assessment_41页_1mb

Financial Sector Assessment of the Republic of Indonesia (June 2017)

Core Content

The Financial Sector Assessment Program (FSAP) conducted by the IMF and World Bank in 2016–2017 evaluated Indonesia's financial sector, focusing on vulnerabilities, developmental issues, and interlinkages. The mission highlighted the need for a more coordinated, integrated, and resilient financial system to support inclusive economic growth and development.

Main Points

1. Macro and Microeconomic Context

• Indonesia has shown strong macroeconomic performance and has weathered global financial shocks, including the 2013 Taper Tantrum and commodity price declines.
• Despite economic growth, the country still faces significant developmental challenges, including a large infrastructure gap, low productivity, and rising inequality.
• The government has prioritized financial sector deepening and inclusion, with initiatives such as the National Financial Inclusion Strategy (SNKI) and the KUR credit guarantee program.

2. Structure of the Financial System

• Indonesia's financial system is relatively shallow and bank-dominated, with banks accounting for 72% of GDP in total financial sector assets at the end of 2015.
• The insurance sector is the fastest-growing segment, contributing significantly to financial sector expansion.
• Financial conglomerates (FCs) are dominant, with 44 identified groups holding 66% of financial sector assets. Banks within FCs make up 84% of the banking sector's assets.
• A state-owned financial holding company is planned for 2017 to consolidate state-owned banks and SME-focused financial entities.

3. FSAP Scope and Implications

• The financial sector needs to deepen, improve efficiency, and enhance inclusion while maintaining macro- and micro-prudential standards.
• Stronger inter-agency coordination is essential to create a coherent policy framework and monitor financial risks across sectors.

Key Areas of Focus

4. Risks and Resilience

• Bank capital ratios have increased, currently above regulatory requirements (20.6% in Q3 2016), with over 90% of capital being high-quality common equity tier-1.
• Asset quality has deteriorated, with NPLs rising from 1.7% in 2013 to 3% in late 2016, particularly in commodity and manufacturing sectors.
• Weak internal risk management and control functions have been identified as a concern, requiring attention to the insolvency and creditor rights (ICR) framework.

5. Oversight and Governance

• Institutional Mandates: Recent reforms have led to overlapping and unclear mandates across agencies, necessitating clarification and strengthening of responsibilities.
• Legal Protection: Legal safeguards for supervisors and officials involved in oversight and crisis management are inadequate and need alignment with international standards.
• Corporate Governance: The Company Law and corporate governance regulations need reform to clarify roles and enhance the oversight function of the Board of Commissioners (BoC).
• Supervision of Financial Conglomerates: OJK has made progress in regulating FCs, but more proactive governance and risk management are needed. FCs should be encouraged to develop integrated oversight plans and scenario analysis.

6. Crisis Management and Safety Nets

• The Financial System Stability Committee (KSSK), established under the 2016 PPKSK Law, is intended to be a coordination body, but its role and the President's powers to declare a crisis situation are unclear and may require legal clarification.
• The emergency liquidity assistance (ELA) framework lacks a clear link to financial stability and requires improvement in coordination between OJK and BI.
• A public funding mechanism for systemic resolution is recommended to be incorporated into law, with safeguards and ex-post recovery provisions.

7. Development and Inclusion

• Banking Efficiency and Inclusion: The banking system has high net-interest margins but low credit intermediation efficiency and financial inclusion. Only 36% of adults have transactional accounts, below the regional average.
• Capital Markets: Capital markets are underdeveloped, with shallow public and private segments. Institutional investors are limited, and foreign participation is high, which can amplify financial shocks.
• Digital Financial Services (DFS): DFS has potential to improve inclusion and reduce costs, but requires stronger coordination between BI and OJK, and a more competitive contracting process for payment service providers.

8. Insolvency and Creditor Rights (ICR)

• Weak ICR framework increases intermediation costs and hampers capital market development.
• The need for clearer regulations and better oversight of insolvency practitioners is highlighted.
• Reforms to the Bankruptcy Law are recommended to enhance creditor rights and transparency in restructuring.

9. Accounting and Auditing

• Accounting practices are generally adequate, but the passage of the Financial Reporting Act (FRA) is needed to improve oversight and transparency.

Key Recommendations

Conclusion

The FSAP report underscores the need for Indonesia to enhance its financial sector's resilience, efficiency, and inclusiveness. While progress has been made, structural reforms in legal, regulatory, and institutional frameworks are essential to support sustainable development and financial stability. Coordination between agencies, stronger corporate governance, and the development of more robust capital markets and DFS are key priorities for the future.