Good News From The Banking Industry, Credit Grows Equitable In All Economic Sectors

Illustration (Photo: Doc. Antara)

JAKARTA – Governor of Bank Indonesia (BI) Perry Warjoyo revealed that the banking intermediation function continues to show recovery ahead of the close of the first half of 2022.

"Credit growth occurred in all bank groups and in almost all economic sectors, especially in the Corporate and MSME credit segments, as corporate and household activities continued to recover," he said via an online channel on Thursday, June 23.

According to Perry, from the supply side, banking lending standards remain loose, especially in the trade, industry and agriculture sectors in line with improving perceptions of credit risk.

"From the demand side, the recovery in corporate performance continues, as reflected in improved sales, which in turn increases the demand for bank funding, ability to pay, and corporate capital expenditures," he said.

Perry added, credit growth for the micro, small and medium enterprises (MSME) sector also increased by 16.97 percent on an annual basis (year on year / yoy) in May 2022.

"Bank Indonesia continues to encourage banks to increase lending to priority and inclusive sectors, as well as strengthen synergies with the government, other authorities and the business world to accelerate intermediation recovery in order to strengthen the momentum of economic recovery," concluded BI Governor Perry Warjiyo.