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Financial Services Authority (OJK) Jambi Province noted that financial services sector performance in the province improved, contributing to regional economic growth. Commercial banks' disbursed loans rose by 9.26 percent year-on-year (yoy) to Rp54.37 trillion as of November.
Conventional loans grew by 7.84 percent yoy to Rp48.12 trillion, while sharia financing grew by 21.62 percent to Rp6.25 trillion. Banks' third-party funds (TPF) grew by 6.21 percent yoy. The breakdown include conventional banking TPF increasing by 5.79 percent yoy to Rp42.29 trillion and sharia banking TPF rising by 10.68 percent yoy to Rp.16 trillion.
Commercial banks' loan to deposit Ratio (LDR) in November 2024 was recorded at 117.06 percent, or higher than the national commercial banks LDR of 88.46 percent. This happened because loan disbursement by commercial banks in Jambi was greater than the TPF they successfully collected. Meanwhile, the non-performing loan (NPL) ratio in Jambi was maintained at 1.81 percent, which is lower than 2.16 percent national NPL ratio.
Based on type of use, commercial bank loans in Jambi are still dominated by consumption loans at 42.38 percent, followed by working capital loans at 28.82 percent and investment loans at 28.8 percent. Based on the debtor category, the portion of loans disbursed to micro, small, and medium enterprises (MSMEs) and non-MSMEs were recorded at 46.35 percent and 53.65 percent, respectively.
The disbursed loan trend is in line with the fact that the largest portion of disbursed loans in Jambi is to the non-household business sector (including multipurpose loans) at 28.78 percent, followed by the agriculture, hunting, and forestry sector at 27.96 percent as well as wholesale and retail trade at 15.9 percent.
Loans disbursed by Bank Perekonomian Rakyat (BPR) secondary banks in Jambi grew by 6.37 percent yoy to Rp1.1 trillion in November 2024, and their TPF rose by 2.16 percent yoy to Rp1.02 trillion. The LDR of BPR in Jambi reached 85.4 percent in November 2024, while their non NPL ratio of 15.56 percent.
Working capital loans accounted for 55.72 percent of BPRs' total disbursed loans, followed by investment loans at 29.6 percent and consumption loans at 14.68 percent. Furthermore, loans disbursed to MSMEs accounted for 83.36 percent of total loans disbursed by BPRs. Based on business sector, loans to the construction sector accounted for the most at 22.69 percent, followed by the agriculture, hunting and forestry sector at 19.03 percent.
For the non-banking institutions financial services subsector, islamic microfinance institutions saw their disbursed financing surge by 31.61 percent yoy in November 2024. Non-banking institutions had disbursed Rp2.86 billion of funds to 1,519 customers with non-performing financing (NPF) ratio of 7.3 percent.
Disbursed financing increases 0.41 percent yoy and NPF of 3.83 percent yoy. The number of financing contracts also rose by Performance of Financing Companies in Jambi in October 2024 with financing distribution of IDR 8.97 trillion or an increase of 0.41 percent (yoy) with Non-Performing Financing (NPF) at 3.83 percent. There was an increase in the number of financing contracts by 18.55 percent yoy to 1,063,940 contracts.
Meanwhile, the venture capital industry recorded total financing rising 16.3 percent yoy to Rp113.01 billion in October 2024 with their NPF ratio down 2.49 percent yoy to 2.75 percent. There is also new pawn company entity established July 2024 in Jambi Province, namely PT Gadai Mandiri Sentosa. The company's assets and total disbursed loans reached Rp2.22 billion and Rp950 million, respectively, based on its 3rd quarter (Q3) of 2024 report.
For the insurance industry, conventional general insurance premiums surged by 25.7 percent yoy to Rp982.06 billion in September 2024, while conventional life insurance premiums decreased by 69.14 percent yoy to Rp196.29 billion. Separately, the combined total assets and total investments in the pension fund subsector grew by 5.68 percent yoy to Rp229.61 billion and 9.91 percent yoy to Rp222.65 billion, respectively, in September 2024.
Furthermore, financial technology peer-to-peer lending (fintech P2P) saw its accumulated financing soar by 53.94 percent yoy to nearly Rp6.31 trillion in September 2024, and several active recipient accounts experiencing significant growth of 30.2 percent yoy and followed by outstanding financing experiencing positive growth of 50.43 percent yoy to Rp735.96 billion..
