OJK: Central Sulawesi financial services sector stable by end of 2024

Financial Services Authority (OJK) Central Sulawesi Province assessed that the condition of Central Sulawesi's financial services sector remained stable as of Dec. 31, 2024. Positive performance, adequate liquidity, and maintained risk profiles encouraged the growth of the local financial industry.

The banking industry, non-bank finance industry, and capital markets showed an increase along with financial education and inclusion. OJK Central Sulawesi also ensured in a press release on Feb. 28, 2025 that consumer protection was carried out sustainably to support the stability of the financial sector.

The press release explained that the performance of sharia banking in the province improved, with sharia banks' asset value rising by 16,23 percent year-on-year (yoy) to Rp3.58 trillion. The banking commitment to supporting micro, small, and medium enterprises (MSMEs) is reflected in the increase in MSME laons by 12.71 percent to Rp17.83 trillion. The non-performing loan (NPL) ratio remained under control below the 5 percent threshold at 2.5 percent.

Moreover, sharia financing increased 15.13 percent yoy to Rp3.12 trillion, and sharia banks' third-party funds (TPF) grew 14.14 percent to Rp2.18 trillion. Financing companies also recorded positive growth, with their disbursed financing up 14.36 percent yoy to Rp7.05 trillion. Non-performing financing (NPF) remained stable at 1.82 percent, indicating healthy financial performance.

Pension funds' total assets grew 5.14 percent yoy to Rp104.61 billion in 2024, and pension fund investments rose 5.2 percent to Rp102.52 billion. Meanwhile, peer-to-peer (P2P) financing increased 68.22 percent to Rp491.83 billion, and the number of P2P lending recipient accounts reached 153,189 accounts. P2P lending 90-day default rate also remained low at 1.38 percent, indicating a high level of investor confidence in this sector.

For the capital market industry, the number of investors in Central Sulawesi continues to grow. Investor accounts in the province soared by 51.45 percent yoy to 150,660 accounts as of December 31, 2024. Mutual fund accounts dominated with 116,462 accounts, or 77.3 percent of total investments.

OJK Central Sulawesi is optimistic that the growth of the financial industry will continue. Support for financial education and strengthening regulations, the OJK branch office noted, are the keys to regional economic stability.