The realization of tax amnesty program repatriation fund that come to bank is still minimum so there has not yet affected the liquidity. The bank tends to hold the credit until the end of September 2016.
Directorate of General Taxation data per 1st September 2016 shows the declaration of taxpayers property reaching 150 trillion IDR, consisting of repatriation funds of 10 trillion IDR, foreign declaration of 21,4 trillion IDR, and domestic declaration of 119 trillion IDR. The ransom tax in tax amnesty program reached 3,14 trillion or by 1,9% from the target of 165 trillion IDR.
Meanwhile, the bank loan growth was only by 7,7% of YOY until July 2016 or were slower than the previous month which was by 8,2% of YOY. Loan to deposit ratio (LDR) that has been the indicator of bank liquidation reached by 91,8%, reaching the maximum limit of 92%.
Kartika Wirjoatmodjo, the President Director of Bank Mandiri Tbk (BMRI), said that the liquidity became bank’s concern so the credit distribution would be slower. “The bank is still concern about the liquidity. The bank put the funds in the liquid instrument because the bank is still not sure that the credit risk will be improved,” said Kartika.
The loan liquidation cycle will increase by the end of the third quarter until the fourth quarter. BMRI’s loan growth target for this year is by 10% to 655,5 trillion IDR.
Samuel Sekuritas Indonesia considered banks to release more interesting products to attract customer funds and increase the liquidity. Samuel recommended HOLD for BMRI with a target price of 10.502 IDR. (*)
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