• Sectoral Review

    • sectoral review
    • sectoral review
      • October-2020: Banking Industry
        We view the outlook for the banking industry to remain stable in the medium term, although the growth prospects and profitability may show a weakening trend in the short term period. The increasing economic risk due to the COVID-19 pandemic weakens loan growth, which may cause contraction until the end of the year. With weaker loan growth, the strongest pressure was felt in the profitability indicators; banks are suffering lower interest revenue - but having learned from past crises – keeping abundant liquidity to ensure survival during this difficult time. Furthermore, the pressure also comes from incurring higher provision costs due to asset quality deterioration and loan restructuring, as they have to absorb the cost of debtors struggling in making timely payments. More detail ...
      • August-2020: Construction Industry
        We view the outlook for construction industry will be challenging as growth prospects are weaker than we anticipated. The coronavirus (COVID-19) pandemic has resulted in reduced construction activities following the large-scale social restrictions (PSBB) imposed by the government to curb the outbreak, consequently delaying project deliveries. Demand is also expected to be weaker in the short term on the back of delays and postponement of several infrastructure projects and the economic fallout caused by COVID-19. More detail ...
      • June-2020: Non-Life Insurance Industry
        We are of the view that the outlook for the non-life insurance industry is negative in the short term, given the COVID-19 pandemic impact that disrupted economic activities and significantly lowered demand for the non-life insurance industry, increasing the overall risk profile. Growth has significantly dropped to 0.4% in 2020 in comparison to 14.1% in FY19, and in our opinion, there is still a risk of further decline if the recovery process of economic activities are longer than initially projected. More detail ...
      • April-2020: Power & Energy In Indonesia
        PEFINDO is of the view that long-term energy demand in Indonesia is correlated with the growing population and economic growth. The Ministry of Energy and Mineral Resources (ESDM) predicted electricity needs in the country will grow by 7% every year until 2027, driven by domestic household consumption. This affects the trade deficit, especially in relation to crude oil (including oil fuel) and the gas sector. To mitigate the energy imbalance, the government is committed to achieving 23% renewable energy in the national energy mix by 2025, in alignment with its commitment to mitigate climate change. More detail ...
      • February-2020: Slowing Growth Continues
        The finance industry reported weak financing growth of 3.7% year-on-year (YoY) to IDR 452.2 trillion in 2019, lower than the compound annual growth rate (CAGR) in the last four years of 3.9%. This percentage is also lower compared to the previous year, which was 5.2% YoY. More detail ...
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