Jakarta. The State-Owned Banks Associations, also known as Himbara, recently affirmed its commitment to support the government’s industrial downstream policy.

At President Joko “Jokowi” Widodo’s behest, Indonesia is currently focusing on having its mineral ores to be processed domestically for greater added value. Jokowi said this would call for all hands to be on deck, and according to Himbara chair Sunarso, the banking sector would give its support.

“Downstreaming will not stop. There is no going back. The banking industry is committed to supporting the industrial downstream so people can benefit from the added value that the policy brings,” Sunarso said, shortly after a meeting between banking representatives, Financial Services Authority (OJK), and President Jokowi on Monday.

Himbara encompasses four state-owned banks, namely BRI, Bank Mandiri, BNI, and Bank BTN. Sunarso is the president director at BRI.

Indonesia has banned exports of unprocessed nickel ores —a critical component for steel production— since Jan. 2020. According to Jokowi, the ban has caused its export value to jump from Rp 17 trillion to Rp 360 trillion. Following the ban, the European Union (EU) launched a lawsuit at the World Trade Organization (WTO) as it could take a toll on the bloc’s steel industry. The WTO ruled in the favor of the EU, but Indonesia has filed an appeal.

Jokowi at the recent ASEAN-EU summit also called for the need to form a partnership that is based on equality. So there would not be any country that dictates over the others.

Read More:

• Jokowi Wants His Successor to Continue Banning Mineral Ore Exports
• Jokowi Urges Mutual Respect in EU-ASEAN Partnerships

Solid Performance
The banking sector has yet to launch its annual financial report. However, Himbara is optimistic that the state-owned banks would record a solid performance in 2022 by booking aggressive growth while prioritizing prudence.

“The quality of the assets that we manage has greatly improved. This is inseparable from OJK’s policies, which include extending the relaxation period to determine the quality of productive assets, which is necessary,” Sunarso said.

According to Sunarso, Himbara, BRI in particular, has adopted a strategy for healthy and sustainable growth, in which the company grows selectively by making adequate reserves to anticipate any downturn due to uncertain economic conditions.

“We are ready to grow. We are ready to face the various challenges ahead with reserves. We have proven that the banking sector has booked a very solid performance in 2022,” Sunarso said.