Bank Indonesia consistently maintains price stability and strengthens policy coordination with the Government, both at the central and regional levels through the Inflation Task Force (TPI and TPID), in order to keep inflation within its target range. (NPL) was recorded at 3.15% (gross) and 1.07% (net), respectively. (Graph 18).
However, the intermediation function of the financial sector is still weak due to limited credit growth in line with weak domestic demand as a result of depressed business performance and banking prudence due to the continuing COVID-19 pandemic. Credit in October 2020 contracted by -0.47% (yoy), meanwhile, growth in Third Party Funds (TPF) was recorded at a higher rate of 12.12% (yoy) (Graph 19).