3 Million Homes and Free Nutritious Meals Program Present Opportunities for the Insurance Industry

JAKARTA, investortrust.id - Ogi Prastomiyono, Executive Head of Insurance Supervision, Guarantee, and Pension Fund of the Financial Services Authority, or OJK, , stated that the 3 Million Homes and Free Nutritious Meals, or MBG), programs present opportunities for the growth of the insurance industry.

"The existence of various government priority programs such as the 3 Million Homes construction program and the free nutritious meals program has the potential for the insurance industry to contribute," he said, quoted from Antara, Thursday Jan. 30, 2025.

He mentioned that OJK has discussed with associations of insurance industry players about their support for government programs.

"In general, the insurance industry as a whole is ready to commit to supporting all government programs," Ogi said.

Agusman, Executive Head of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions of OJK, said that government programs can help boost the performance of the financing sector when motor vehicle sales are expected to remain sluggish this year.

"Financing in the housing sector is expected to be a potential financing segment with the government's 3 Million Homes program," he said.

Dian Ediana Rae, Executive Head of Banking Supervision of OJK, stated that to support the realization of the construction of 3 Million Homes for low-income communities, they consistently coordinate regarding the distribution of housing loans with relevant institutions and agencies.

"In this regard, the provision of credit to the community is based on risk management principles that consider risk appetite and the prudence principle in each bank, so it is not only based on the quality of credit facilities in the financial information service system (SLIK)," he said.

He stated that OJK, along with the government and other regulators, will continue to monitor various national financial system indicators to encourage sustainable domestic economic growth and stability through various policy mixes or stimulus.

As of November 2024, he noted that banking liquidity conditions are considered adequate with liquidity tools against non-core deposits (AL/NCD), liquidity tools against third-party funds (AL/DPK), and liquidity coverage ratio (LCR) at 112.94%, 25.57%, and 213.07% respectively.

Meanwhile, the loan to deposit ratio (LDR) of 87.34% is still deemed adequate in anticipating credit increases," added Dian.