BI: Working Capital Credit January 2024 Grows 12.2 Percent

JAKARTA - Bank Indonesia (BI) reported that working capital loans in January 2024 grew 12.2 percent year on year (yoy), an increase compared to the previous month's growth of 10.7 percent (yoy).

"The development of working capital loans stems from the growth of the financial, real estate and services sectors of companies as well as the mining and quarrying sector," said Head of the BI Communications Department Erwin Haryono as quoted by ANTARA, Friday, February 23.

Erwin said that investment credit (KI) in January 2024 grew 12.8 percent (yoy), mainly sourced from the manufacturing sector and the like as well as the transportation and communication sector.

Credit consumption (KK) grew by 9.5 percent (yoy) in January 2024, mainly driven by the development of Home Ownership Loans (KPR), Motor Vehicle Loans (KKB), and multipurpose loans.

Based on the report on the January 2024 Position Circulating Money Analysis released by BI, the development of working capital credit, investment credit and consumption credit has affected credit disbursement growth in January 2024.

Overall, credit disbursement in January 2024 was recorded at IDR 7,009.9 trillion, or grew 11.5 percent year on year (yoy), higher than the previous month of 10.3 percent (yoy).

"This development is in line with the growth in lending on corporate debtors which grew 13.3 percent (yoy) and individual debtors grew 9.8 percent (yoy)," said Erwin.

Loans are given only in the form of loans (loans), and do not include financial instruments combined with loans, such as securities (debt securities), receipts (banker's acceptances), and repo bills.

In addition, credit provided does not include credit provided by public bank offices domiciled abroad, and loans disbursed to the central government and not residents.

Furthermore, property credit distribution grew 8.3 percent (yoy) after growing 7.6 percent (yoy) in December 2023, mainly from growth in mortgages and KPA as well as real estate loans.

Meanwhile, construction credit grew 0.1 percent (yoy) after contracting 0.2 percent (yoy) in the previous period.

Credit disbursement to micro, small and medium enterprises (MSMEs) in January 2024 grew 8.9 percent (yoy), after growing 7.9 percent (yoy) in the previous month.

The growth in MSME lending mainly on a micro scale of 23.1 percent (yoy). Based on the type of use, MSME credit growth in January 2024 was influenced by investment loans and working capital loans.