Danamon Optimistic About Market Stability and Growth, Offers Tailored Financial Solutions to Support Customers

Press Release / 02 December 2024

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Jakarta, 2 Desember 2024 –  PT Bank Danamon Indonesia Tbk (Danamon) remains optimistic about market dynamics following the announcement of the new cabinet, which appointed Sri Mulyani Indrawati as Minister of Finance on 20 October 2024. Under the leadership of President Prabowo Subianto, this appointment is widely regarded as a strong indication of continued stability and disciplined fiscal policy. This sentiment was reinforced by the Composite Stock Price Index (IHSG) rising by 0.89% and the rupiah strengthening against the US dollar by 20 points the next day.

The positive market response highlights the confidence in Sri Mulyani's proven expertise in maintaining economic stability, particularly as the nation continues its recovery from the impacts of the pandemic. Danamon remains dedicated to empowering its customers by offering innovative financial solutions that enable them to seize economic opportunities and effectively manage their finances in this favorable climate.

At the Financial System Stability Committee (FSSC) meeting on 18 October 2024, Sri Mulyani emphasized that domestic economic activity is projected to grow steadily through the end of the year. The government's fiscal policy will prioritize bolstering purchasing power, ensuring price stability, and reinforcing the Social Protection program as a cornerstone of economic recovery. Additionally, the simultaneous regional elections in November this year and heightened public mobility during national holidays are expected to further stimulate domestic consumption.

However, the plan to raise value added tax (VAT) to 12% remains a point of concern. Such an increase could potentially drive inflation, raising the prices of goods and eroding people's purchasing power. While this move is deemed necessary to bolster state revenue, its potential impact on consumption needs to be closely monitored to prevent any negative effects on the economy.

Hosianna Evalita Situmorang, Economist at PT Bank Danamon Indonesia Tbk, emphasized that pro-growth fiscal policies must consider the protection of people's purchasing power. "If consumption weakens due to inflation, it could hinder economic recovery. Therefore, striking a balance between fiscal adjustments and safeguarding purchasing power is crucial," she stated.

She further noted that President Prabowo Subianto's proposed tax incentives, such as reducing the corporate income tax rate from 22% to 20% and eliminating property or housing taxes—currently totalling 16%, comprising 11% VAT and 5% land and building acquisition tax (BPHTB)—could significantly accelerate economic recovery momentum.

In the monetary sector, central bank Bank Indonesia (BI) has announced plans to provide incentives to banks that extend credit to job-creating sectors. This policy, set to take effect on January 1, 2025, aims to boost demand for goods and services while fostering the creation of new job opportunities. Additionally, incentive programs such as a 0% down payment for home and vehicle purchases have been extended until December 2025, encouraging individuals to invest and stimulating economic activity.

Danamon views this policy as an excellent opportunity for customers, including individuals and business actors, to capitalize on the stable market conditions. To support its customers, Danamon offers a range of financial solutions that can be customized to meet their unique needs and goals.


Optimizing Opportunities with Personalized Financial Solutions Tailored to Every Customer's Needs
Ivan Jaya, Consumer Funding and Wealth Business Head, PT Bank Danamon Indonesia Tbk, said that Danamon is ready to support customers through innovative financial products designed according to customer needs, in order to face every challenge and make the most of opportunities in the years to come.

For instance, to support individual customers in their investment journeys, Danamon provides the convenience of accessing mutual fund products through the D-Bank PRO mobile banking application. The available mutual fund options range from Money Market Mutual Funds to Stock Mutual Funds, all managed by professional investment managers. This allows customers to invest seamlessly anytime, anywhere, directly through the app.

Danamon also provides a variety of financing solutions tailored to meet customer needs, including motor vehicle loans through the KPM Prima product. This offering is a collaborative effort between Danamon and its subsidiary, Adira Finance, in the financing sector. KPM Prima features competitive interest rates and flexible tenors. 

For customers requiring foreign exchange services, Danamon reintroduces the Danamon Lebih PRO product, a multicurrency savings solution that allows customers to manage up to nine currencies within a single account. This product offers competitive exchange rates and the convenience of foreign exchange transactions through the D-Bank PRO mobile app. Moreover, the savings account is complemented by the Danamon Lebih PRO Debit Card, ideal for use abroad. The card eliminates conversion fees by directly deducting the applicable currency in the country where the transaction occurs, making it particularly suitable for customers with international transaction needs.

These diverse financial solutions, along with many others tailored for both individual and business customers, reflect Danamon's commitment to transforming as One Financial Group in collaboration with its group companies. "We are dedicated to continuous innovation and delivering comprehensive financial solutions, enabling our customers to grow and thrive alongside Danamon," Ivan added.

Detailed and comprehensive information about the various financial solutions offered by Danamon and its group companies, designed to help customers make the most of current opportunities, is showcased in the Danamon Financial Friday mini-series. This series regularly highlights the latest financial trends, practical financial management tips, and expert insights. As part of Danamon's commitment to financial education, the mini-series is available every Friday on Danamon's official YouTube channel, with all episodes accessible at bdi.co.id/dffplaylist.

“With a range of financial solutions tailored to meet diverse customer needs, Danamon is confident in its ability to support customers in navigating ever-evolving market dynamics, while helping them achieve their financial goals for the future," Ivan concluded.

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