BI Reveals Conventional-Syariah Compact Credit And Financing Increases

Governor of Bank Indonesia Perry Warjiyo (left). (Photo: Doc. ANTARA)

JAKARTA Bank Indonesia (BI) stated that bank credit and financing grew in all segments and types of credit use.

It was stated that bank credit in July 2023 grew by 8.54 percent year on year (yoy), an increase from the previous month of 7.76 percent.

"This condition is mainly contributed by the social services, mining, and services sectors in the business world," he said after the Board of Governors' Meeting (RDG) quoted Friday, August 25.

Perry explained that this development was influenced by the supply side of credit in line with the loose bank credit distribution standards, so that it was accommodative to increasing credit growth.

"Credit growth is also influenced by high demand in line with increasing economic growth," he said.

Perry detailed that Islamic financing also continued to increase to 17.55 percent year on year in July 2023, mainly driven by increased working capital financing.

In the MSME segment, credit growth reached 7.59 percent in July 2023, mainly supported by the micro segment.

"Bank Indonesia will strengthen the effectiveness of implementing macroprudential policy incentives in coordination with the government, banking, and the business world to encourage lending/financing of banks in downstream sectors (minerba, agriculture, livestock, and fisheries), housing (including public housing), tourism, inclusive (including MSMEs, KUR), and ultra micro (UMi), as well as a green economy," concluded BI Governor Perry Warjiyo.