Bank Indonesia Optimizes Banking Credit Distribution Will Be Higher In The Fourth Quarter Of 2022

Photo: Doc. Antara

JAKARTA - Bank Indonesia (BI) projects that new lending in the fourth quarter of 2022 will be higher than in the previous quarter.

As for the end of the year, bank credit is estimated to grow 9-11 percent on an annual basis.

Based on the Bank Indonesia Banking Survey, the increase in lending in the fourth quarter of 2022 is reflected in the weighted net balance (SBT) which reached 90 percent. A little higher than 88.1 percent in the third quarter of 2022.

The main priority of respondents in the distribution of new credit in the fourth quarter of 2022 is working capital credit, followed by investment credit and consumption credit. For consumption loans, the distribution of home ownership loans (KPR) is still a top priority.

By sector, new lending in the fourth quarter of 2022 is prioritized in the wholesale and retail trade sector, the manufacturing industry sector, and the financial intermediary sector.

Executive Director of the Head of the BI Communication Department Erwin Haryono said the standard for lending in the fourth quarter of 2022 is estimated to be slightly looser than in the previous period.

"This is indicated by the Lending Standard Index (ILS) which is negative at -1.9 percent. The credit distribution policy is estimated to be looser, especially in terms of credit approval costs," he said in a written statement, quoted Monday, October 24.

On the other hand, the survey results showed that respondents remained optimistic about credit growth in the future.

Respondents estimate credit growth in 2022 to be 8.5 percent on an annual basis or an increase from the realization of growth in 2021, which is 5.2 percent.

Previously, Bank Indonesia Governor Perry Warjiyo said credit distribution in September 2022 grew by 11 percent year on year (yoy).

This increase was supported by all types of credit and the economic sector. Sharia financing also increased by 19 percent yoy in the same period.

In terms of supply, the continued improvement in banking intermediation is supported by credit distribution standards that remain loose, along with improving banking approaches in lending, especially in the industrial, agricultural, trade and construction sectors.

In terms of demand, it is supported by the continued recovery in corporate and household performance.

Corporate performance is reflected in improving payability, sales rate, and capital expenditure, especially in the trade and mining sector.

Meanwhile, Perry said, household performance is reflected in improving consumption and household investment in line with consumer optimism.