Sayonara Double Digit, Credit Growth Now Only 8 Percent

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) reported that bank credit growth in April 2023 was 8.08 percent year on year (yoy).

BI Governor Perry Warjiyo said that the highest credit growth occurred in investment loans of 10.12 percent.

"Followed by consumption credit of 8.68 percent and working capital credit of 6.55 percent," he told the media crew in Jakarta on Thursday, May 25.

Perry said, in terms of demand for credit growth, it was mainly recorded in corporations in the mining, industrial and service sectors.

"In terms of supply, banks are optimistic that they will be able to achieve the 2023 credit disbursement target in line with continued economic improvements and still loose liquidity and standard lending," he said.

Meanwhile, sharia financing grew by 18.68 percent in April 2023. In the micro, small and medium enterprises (MSMEs) segment, credit growth was recorded at 6.83 percent (yoy) in April 2023.

"This is supported by the realization of the distribution of People's Business Credit (KUR) of Rp53.93 trillion until April 30, 2023," he said.

Intermediation slops down single digits

Just so you know, at the end of last year credit growth was quite comfortable perched at the double digit level. This condition illustrates that business activities and community consumption activities are running well which leads to an increase in the national economy.

As for mid-2023, banking intermediation was recorded as a landslide to single digits. The first book occurred recorded at the end of the first quarter of 2023.

In detail, banking credit growth in January was 10.53 percent, February 10.64 percent, March 9.93 percent, and April 8.08 percent.

"Bank Indonesia will continue to encourage banking intermediation to maintain the momentum of economic recovery," concluded BI Governor Perry Warjiyo.