Jakarta, 24 September 2023
Nusa Dua, 24 September 2023 – As the leader of the International Public Asset Management Company Forum (IPAF), PT Perusahaan Pengelola Aset (PPA) held the IPAF Annual Summit & International Conference in Bali on 20-22 September 2023 in Nusa Dua, Bali. This series discuss strategic issues regarding economic conditions in the Asian Region and IPAF’s concrete steps to contribute to maintaining financial stability through non-performing loans (NPLs) management solutions.
Interim President Director of PPA Avianto Istihardjo said, “PPA’s leadership as IPAF Chairman is proof of international confidence in PPA’s commitment and role in supporting banking stability through NPL management solutions. We hope that this summit will be able to spark ideas, initiatives, and applicable solutions to maintain economic stability in the region”.
The IPAF Annual Summit & International Conference was attended by IPAF members, policy makers, banks, professionals, and investors from various countries in the world, and presented 20 international and Indonesian speakers who are experienced and competent in their fields. The series of IPAF activities began with a Summit Meeting attended by 11 IPAF member delegates from eight countries in Asia, among others, PPA (Indonesia), Korea Asset Management Corporation, Zheshang Asset Management (China), Vietnam Debt Asset Trading Corporation, Vietnam Asset Management, Sukhumvit Asset Management (Thailand), Korea Deposit Insurance Corporation, Fund of Problem Loans Kazakhstan, Deposit Insurance Corporation Malaysia, Deposit Insurance Corporation Of Mongolia, and Mongolian Asset Management Corporation.
The second day continued with the IPAF International Conference entitled “Stronger Recovery through Regional Financial Cooperation”. The event was also attended by asset management practitioners, regulators, banks, professionals, and investors from various countries. The event was also attended directly by Vice-President of South, Central, and West Asia Asian Development Bank (ADB) Shixin Chen, Director General of State Wealth of the Ministry of Finance Rionald Silaban, Expert Staff for Strategic Policy of the Ministry of SOEs Wahyu Setyawan, and President Director of PT Danareksa (Persero) Yadi Jaya Ruchandi.
The third day was a special forum for the Coordinating Council Meeting which discussed important issues and formulated follow-up actions to become a common reference in strengthening the role of IPAF as an economic safety net in the Asian region through NPL management.
“As a National Asset Management Company (NAMCO) in Indonesia, PPA in the last two years has completed the NPL management of two leading banks with a value of more than Rp11 trillion. In implementing NPL management, PPA uses an innovative approach, namely an asset swap scheme that is proven to be able to solve the challenges faced by banks in managing low-quality assets effectively with measurable risk management. PPA also collaborates with relevant stakeholders to obtain optimal recovery,” said Avianto.
President Director of PT Danareksa (Persero) Yadi Jaya Ruchandi said, “As the Government Investment Holding that houses PPA, Danareksa fully supports PPA to carry out its role as the only NAMCO in Indonesia through three business pillars, namely restructuring and revitalizing SOEs, NPL management, and Special Situation Fund. Danareksa provides full support for PPA’s involvement as an active member of IPAF to contribute to creating innovative breakthroughs through collaboration and transfer of experience within the scope of NPL settlement.”
Established in 2013 by the Asian Development Bank (ADB), the International Public AMC Forum (IPAF) is an international forum for asset management companies (AMC) to strengthen their role as an economic safety net in the Asian region through NPL management.
After experiencing a significant recovery since 2021, ADB projects economic growth in the Asia Pacific region to slow this year. Some of the impacts that need to be anticipated are high inflation, rising interest rates, declining external purchasing power, and increasing geopolitical tensions. These four factors can slow down the economy and aggravate business profitability, as well as financing and refinancing capacity.
NPLs in banks in the Asian region are estimated to reach USD707 billion in 2022, increases by 5% from USD674 billion in the previous year. This trend is expected to accelerate in the medium term due to the economic slowdown and government stimulus ending.
This situation requires actionable efforts to maintain financial stability by maintaining a healthy banking system. Moreover, currently a number of countries in Asia tend to have a high dependence on bank financing rather than funding access in the capital market. Therefore, ADB considers that IPAF has a crucial role in maintaining financial stability in the Asian region.
“Hopefully, the constructive discussions carried out can produce ideas, initiatives, and applicable solutions in an effort to help maintain the stability of the financial industry in Indonesia and in the region. We are very open to collaborate to optimize opportunities to realize common goals in maintaining economic stability,” Avianto concluded.
About PT Danareksa (Persero)
PT Danareksa (Persero) is a transformation specialist SOE Holding that is wholly (100%) owned by the Government of the Republic of Indonesia through the Ministry of State-Owned Enterprises (BUMN). PT Danareksa (Persero), which has more than 45 years of experience, was appointed as a SOE Holding through Government Regulation (PP) Number 113 of 2021 which currently oversees several subclusters, namely financial services, industrial estates, construction services, and media and technology.
In 2022, Indonesian SOE Minister Erick Thohir launched Danareksa SOE Holding as the first transformation specialist SOE holding in Indonesia to manage cross-sector SOEs on July 20, 2022 based on Republic Government Regulation No. 7 of 2022 concerning the Increase of State Capital Participation of the Republic of Indonesia into the Share Capital of the Company (Persero) PT Danareksa. The addition of PMN to Danareksa share capital came from the transfer of all Government shares to 10 SOEs, namely PT Nindya Karya, PT Kliring Berjangka Indonesia, PT Kawasan Industri Medan, PT Kawasan Industri Wijayakusuma, PT Kawasan Industri Makassar, PT Kawasan Berikat Nusantara, PT Balai Pustaka, PT Perusahaan Pengelola Aset, PT Jakarta Industrial Estate Pulogadung and PT Surabaya Industrial Estate Rungkut.
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About PT Perusahaan Pengelola Aset
PT Perusahaan Pengelola Aset or PPA is a member of Danareksa Holding which acts as a National Asset Management Company (NAMCO), which is a strategic government instrument in increasing and optimizing the value of SOEs through restructuring and revitalizing SOEs, managing non-performing loans (NPL) banks, and innovative and effective Special Situations Fund solutions.
PPA’s achievements and contributions have received recognition from the public through national and international awards, including:
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