The Financial Services Authority (OJK) predicts the banking industry’s profitability to contract by 30-40% in 2020, as profit fell 33%, mainly due to the impact of the COVID-19 pandemic. The banking net interest income declined as the real sector has not recovered yet, and demand for credit or lending remained low. At the same time, banks still provided stimulus through postponing the payment of principal loans and interests of debtors hit by pandemic as ruled on the restructuring program.
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