Apart from macro prudential regulations on banking industry, Bank Indonesia will strengthen assessment and surveillance of financial system participants, not only financial services institutions but also the users of financial services such as corporations. In this regard, Bank Indonesia will strengthen and expand its macro prudential surveillance coverage towards households, corporations and non-financial corporate groups.
The results of our assessment shows that non-financial corporate’s weak performance can result in potential risks to the financial system, particularly banking. For that purpose, macro prudential surveillance needs to be strengthened in order to be able to identify at an early stage the source of the risk and the relationship of nonfinancial corporate risk with other participants in the financial system, particularly banking.