Latest news with #BankMandiri
The Star
21-05-2025
- Business
- The Star
Economy likely to grow below 5%, say experts
Financial management: A rider on a delivery in the business district of Jakarta. Indonesia's sub-5% growth would persist until next year and would only rebound to above 5% in 2027, says Bank Permata chief economist. — Reuters JAKARTA: Economists forecast that Indonesia's gross domestic product (GDP) growth will fall below 5% this year, thanks to a domestic consumption slowdown and global turbulence dragging down investment. State-owned lender Bank Mandiri macro and financial market research head Dian Ayu Yustina said on Monday that it projected the country's economy would grow by 4.93% year-on-year (y-o-y) this year, lower than last year's 5.02%. The estimate is based on decreased first-quarter (1Q25) growth of 4.87% y-o-y because of lower household consumption, which only reached 4.89% y-o-y, and government consumption, which contracted by 1.38% y-o-y. 'Admittedly, there's an effect from normalisation because of the general election in the 1Q24. 'Household consumption during the election increased and subsequently we see the base effect this year,' Dian said. She said that the household consumption growth in the 1Q25 was 'stable' thanks to the Aidilfitri festive season, when people normally spend more. Dian said that GDP growth in the 2Q25 would likely be higher, thanks to the boost from government consumption, which contracted in the first three months of this year because of the budget reallocation policy, which temporarily restricted state spending. The projection for the 2Q25 growth was 4.92% y-o-y, but Dian noted that it might reach a faster tick if the central bank and government loosen monetary and fiscal policies. Dian predicted that Bank Indonesia (BI) would cut its benchmark rate by 25 basis points this week, which is to be announced after the central bank's monthly board of governors meeting scheduled for yesterday and today. Private lender Bank Permata also projected slower GDP growth this year, in the range of 4.5% to 5% with a centre estimate of 4.78%, which was down from its previous projection of 5.11% y-o-y. The private lender's chief economist, Josua Pardede, said on May 14 that the sub-5% growth would persist until next year and 'would only rebound' to above 5% in 2027. The estimates have taken global risk factors into consideration, particularly regarding the matter of the trade war between the United States and China that brought up uncertainties, which have deterred foreign investment as businesses hold back expansion plans until the dust settles. He recommended that the government undertake counter-cyclical, expansionary financial measures to boost consumption and lift overall growth. 'Even though the impact of government spending on the overall GDP or its share of the economy is not big, we can imagine how big its multiplier effects on consumption and investment are,' Josua said. Domestically, Bank Permata said household consumption would remain under pressure this year. It also stressed the importance that the government maintain prudent financial management. President Prabowo Subianto's administration has a full-year GDP growth target of 5.2% for 2025, and the president hopes to achieve a rate of 8% by the end of his term. — The Jakarta Post/ANN
Business Times
29-04-2025
- Business
- Business Times
Indonesia's state banks eye bigger share of growing wealth market in Singapore
[JAKARTA] Bank Negara Indonesia (BNI) and Bank Mandiri, Indonesia's state-owned banks, are pulling out all the stops to make their mark in Singapore's competitive wealth management sector. This comes as an increasing number of affluent Indonesian individuals and corporate clients funnel their assets into the city-state, tapping into a market estimated to be worth around 700 trillion rupiah (S$54.7 billion). The move is part of a bigger picture to strengthen the bank's ties with Indonesia's expanding base of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), many of whom are spreading their financial wings and managing significant assets beyond Indonesia. In an interview with The Business Times, Agung Prabowo, BNI's director of corporate banking, explained that the market potential for Indonesian high-income earners in Singapore is substantial, with over 3,000 individuals fitting the profile. Corporate banking forms the backbone of the bank's operations. He highlighted that many of BNI's corporate clients, who also manage substantial personal wealth, are increasingly seeking comprehensive financial solutions that go beyond Indonesia's borders. 'Our international business strategy is straightforward: we follow the flow of Indonesian wealth and aim to support our clients as they expand globally,' he noted. 'So, expanding our services to Singapore is a natural progression in our efforts to better serve our clients.' A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In March, BNI launched its first wealth management service in Singapore, targeting HNWI clients, including Indonesians living in the city-state. The bank has formed partnerships with Schroders and Fullerton Asset Management to cater to accredited investors—those with an annual income above S$300,000 or assets exceeding S$2 million in Singapore. The bank plans to expand its partnerships with other major financial institutions in the Republic in the near future, aiming to establish a solid wealth management foundation within five years. Steven Suryana, BNI's senior executive vice-president of wealth management, said as an initial step, BNI will focus on serving Indonesian clients and the Indonesian diaspora, while remaining open to expanding its customer base both regionally and globally. 'We are definitely aiming for significant growth. In Indonesia, it took us around eight years to build our wealth management platform. In Singapore, we expect to achieve this much faster. Our wealth management business in Singapore focuses on HNWIs, not retail customers,' he explained. He noted that there are significant opportunities among Indonesian assets parked in Singapore, referring to data from Indonesia's tax amnesty programme during former president Joko Widodo's administration. According to Finance Ministry data, Indonesians declared around 700 trillion rupiah worth of assets held in Singapore during the tax amnesty, but only about 12 per cent of those assets were eventually repatriated to Indonesia. 'There is still a substantial amount of wealth abroad, and we see a real opportunity to serve these clients through our Singapore office,' pointed out Suryana. BNI currently holds some US$6 billion in overseas assets, with roughly half of that amount based in Singapore. Domestically, the bank manages around 200 trillion rupiah assets under management, encompassing both deposits and investments, and serves over 100,000 affluent clients. Sustained growth Indonesia is swiftly emerging as a powerhouse in wealth creation, with HNWIs and UHNWIs growing at a rate of 4.2 per cent in 2023, placing the country among the top four in the Asia-Pacific region. This surge was fueled by Indonesia's strong economic expansion and growing sectoral diversification, according to a survey by Knight Frank. The number of UHNWIs is projected to continue its sharp rise throughout the decade, solidifying Indonesia's role as a pivotal player in Asia's wealth landscape. Other than BNI, Bank Mandiri, which entered the wealth management sector in Singapore in 2019, has also seen strong growth in this area. Tri Nugroho, general manager and country head of Bank Mandiri Singapore, shared that since its launch, Mandiri Singapore wealth management portfolio has had a compound annual growth rate of 43.55 per cent. 'Looking ahead, we are expanding our reach to regional investors seeking asset diversification alternatives, including non-individual investors such as family offices and variable capital companies,' he told BT. The bank has teamed up with Swiss firm Lombard Odier to develop its private banking division, offering personalised investment solutions and comprehensive family services, he said. Currently, the bank serves around 50 key clients in Singapore, the majority of whom are accredited investors. There are 63 employees working in the Singapore branch. Nugroho added that wholesale banking remains a core pillar for Mandiri's operations in Singapore, contributing significantly to both revenue generation and long-term strategic value. This segment continues to dominate the bank's overseas portfolio. Asset protection The expansion of Indonesian banks into Singapore's wealth management sector comes amid heightened market volatility driven by trade tensions, prompting clients to seek safe-haven investments to protect their assets from instability. This presents a challenge for both banks as they work to guide clients through these turbulent times. BNI's Agung said that fixed-income assets continue to be a popular choice among the bank's clients, alongside commodities, particularly safe-haven assets like gold. Overall, their investment strategies mirror those of HNWIs globally, with a strong focus on stability and wealth preservation in a volatile market, he added. 'In a market like this, most people are looking for more stability.' Nugroho from Bank Mandiri noted the growing interest among HNWIs from Indonesia and across South-east Asia in fixed-income instruments, particularly Indonesian sovereign and corporate bonds. 'Additionally, we are seeing rising demand for structured products and fund-based solutions that offer capital protection and diversification, aligning with our clients' pursuit of both stability and growth amid uncertain times,' he noted.
Business Recorder
28-04-2025
- Business
- Business Recorder
Asian currencies down against dollar
BENGALURU: Emerging Asian equity markets opened the week higher on Monday, led by Taiwan tracking Wall Street gains, while Indonesian shares rose on strength in banking stocks. Most stock markets in the region were upbeat as an easing of trade tensions between the United States and China helped stir an appetite for risk among investors. Shares in Malaysia, Thailand and India added 0.7%, 0.1% and 1.3% respectively. 'After a period of correction, ASEAN equities are showing upward momentum, having broken out of a technical downtrend that began from the 2017 high(the first technical breakout occurred in 2024),' said Mohit Mirpuri, an equity fund manager at Singapore-based SGMC Capital. Attractive valuations, a weaker US dollar, steady growth prospects in Asia and relatively light investor positioning create the right conditions for investors to start moving back into risk assets, Mirpuri added. Equities in Taipei surged 0.8%, reflecting a strong lead from gains in technology and artificial intelligence-related stocks in the US The Indonesian benchmark index rose 0.7% to hit its highest since February, powered by major gains in large-cap lenders - Bank Central Asia, Bank Mandiri and Bank Rakyat Indonesia. Bank Central Asia, Indonesia's largest lender, reported strong first-quarter earnings last week and set a positive tone for its rivals, who are scheduled to release their results later this week. In Thailand, the local central bank is set to meet on Wednesday for its monetary policy decision, where Poon Panichpibool, markets strategist at Krung Thai Bank, expects a cut. The Thai baht was trading 0.4% lower against a steady US dollar. If the central bank can decide to hold for now, we could see some profits taking on the Thai bonds and that could be somewhat negative on the baht,' added Panichpibool. Currencies across emerging Asia were trading tepidly against a steady US dollar as investors awaited more cues on the future trajectory of trade talks between the world's two largest economies. Despite US President Donald Trump's claims of progress on trade negotiations with China and other countries, concrete evidence remains scarce. On Sunday, Treasury Secretary Scott Bessent declined to support Trump's assertion that tariff talks with China had begun. The week is also packed with economic news including US employment, gross domestic product and core inflation.
Yahoo
18-03-2025
- Business
- Yahoo
Indonesia finance minister denies resignation rumours amid stocks plunge
JAKARTA (Reuters) - Indonesia's finance minister denied rumours of her imminent resignation and pledged to maintain fiscal discipline at a hurriedly called press conference announced after the country's benchmark index plunged to a multi-year low on Tuesday. Indonesian stocks fell as much as 7.1% on Tuesday and the rupiah slid to a two-week low against the dollar, pressured by concerns over the government's fiscal strategy and growth prospects a day before a central bank review of monetary policy. The drop, which also follows rumours of resignation of Sri Mulyani Indrawati in the market, also led to a 30-minute trading halt on breaching the 5% mark. "We are here, we are responsible," she told a press conference. "I will not step down." Sri Mulyani said adding state budget deficit will be maintained at 2.53% of GDP in 2025, below the 3% legal ceiling. Jakarta has responded to the stock's plunge by saying that the economy is fundamentally still strong, with Sri Mulyani specifically saying the latest assessment of gross tax revenues in the first half of March have turned into positive. She also wiped out concerns of capital outflow by sharing huge incoming bids in the government's regular bonds auction on Tuesday, which raised 28 trillion rupiah ($1.71 billion). Tax revenues, excluding customs and excises, fell an annual 30.2% in the first two months of 2025 to 187.8 trillion rupiah due to moderating commodity prices, huge tax restitution and administrative changes, the ministry has said. The stock plunge on Tuesday was also driven by investor concerns over the share movement of Indonesia's state-owned companies, Sri Mulyani said, adding the government will ensure transparency in the management of those firms, currently under the supervision of newly set up sovereign wealth fund Danantara Indonesia. Shares of the three top state lenders Bank Mandiri, Bank Rakyat Indonesia, and Bank Negara Indonesia closed down on Tuesday by 3.21%, 3.92% and 3.23%, respectively. The Jakarta SE Composite index finished the day down 3.8%, its sharpest fall in nearly three years. The rupiah, which hit a two-week low of 16,470 per dollar on Tuesday, has slipped about 2% on the dollar this year - the largest fall of any Asian currency. Bank Indonesia is expected to hold its policy rate at 5.75% on Wednesday amid the depreciation in the rupiah, though a minority of banks predicts a 25-basis-point cut, a Reuters poll has shown. ($1 = 16,420.0000 rupiah)
South China Morning Post
02-03-2025
- Business
- South China Morning Post
Indonesia's Danantara fund sparks questions over economic impact, transparency
Indonesia has launched a new sovereign wealth fund with an initial US$20 billion commitment that could potentially boost its economy or falter if its management falls short of international standards. Advertisement Daya Anagata Nusantara, or Danantara, launched last week by President Prabowo Subianto , will be an investment vehicle and a holding company for Indonesia's powerful state-owned sector. Major Indonesian conglomerates such as state lender Bank Mandiri, oil and gas giant Pertamina, and telecommunications leader Telkom Indonesia, will come under the fund. Speaking at the fund's launch on Monday, Prabowo said Danantara would manage more than US$900 billion worth of assets drawn from state-owned enterprises (SOEs). Touting its impact, he added that the fund would help lift annual economic growth from 5 per cent to 8 per cent within his five-year term. With its huge asset base, Danantara would rank as the world's fourth-largest sovereign wealth fund, surpassing those of Saudi Arabia and Singapore. Unlike Saudi Arabia and Singapore, however, Indonesia has consistently recorded a budget deficit, according to analysts. While Prabowo called the proposed funding of Danantara through a transfer of SOE assets an 'efficient solution', analysts have warned about potential transparency issues and mismanagement. Advertisement Last month, student-led protests erupted across Indonesia after Prabowo announced sweeping austerity measures, redirecting billions from the state budget to Danantara and his other flagship programmes, including a free-meal scheme for schoolchildren and expecting mothers projected to cost US$28 billion annually.
