REPUBLIKA.CO.ID, JAKARTA -- RAM Rating, a Malaysian survey agent, assessed Indonesian banking system as the most profitable banking system in ASEAN, even though the Net Interest Margin (NIM) declined.

Deputy Chief Executive of RAM Rating, Denise Thean explained that intervention by the Financial Services Authority (OJK) in deposit rates will help to reduce pressure on NIM. "NIM declined in recent years because of competition for deposits," he said, Wednesday (19/8).

RAM Ratings also saw Indonesian banking system has a challenge to short term asset quality. It was affected from the slowdown in credit growth in the first half of this year.

According to the research, RAM Rating concluded that the growth of Indonesia banking was strong enough. It was more than 20 percent since 2010 and fell in 2014. Meanwhile, credit expansion this year still tend to be the same as last year, although it was under the OJK targets for 15-17 percent.

"It decreases by 5.4 percent and will be lower than the OJK target," he continued.

It had also been affected by the high interest rates and low commodity prices. “The key of the catalyst growth is the national infrastructure project,” Thean said.

Although there will be asset quality pressure, RAM believed that Indonesian banking sector is still going to have a profitable margin and is the strongest in ASEAN.

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