Banking Loans Reach 10.38 Percent In 2023, But Slow Compared To 2022

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

JAKARTA - Bank Indonesia (BI) recorded that bank credit growth in 2023 remained good so as to support economic growth.

Meanwhile, bank credit growth in 2023 reached 10.38 percent (yoy).

Meanwhile, credit growth distributed by the banking industry throughout 2023 has slowed down compared to the previous year which reached 11.35 percent (yoy).

However, this growth is still within the projected range of Bank Indonesia (BI) which targets to grow 9 percent to 11 percent.

BI Governor Perry Warjiyo conveyed that in terms of demand, the increase in credit was in line with the positive performance of corporations and households.

In terms of supply, credit increase is driven by banking risk appetite and maintained banking liquidity capacity, including the positive impact of Bank Indonesia's liquidity policies such as KLM and Macroprudential Liquidity Supporters (PLM).

"Based on the use group, credit growth is mainly supported by investment credit and working capital loans, respectively at 12.26 percent and 10.05 percent," he explained in the BI RDG, Wednesday, January 17, 2024.

Meanwhile, sectorally, credit growth is mainly supported by the performance of the transportation, Social Services, Trade, and Electricity, Gas, Water sectors.

Sharia financing in December 2023 also grew by 15.80 percent (yoy), while MSME credit growth reached 8.03 percent (yoy).

In the future, he said, credit growth is predicted to increase in the range of 10 percent to 12 percent in 2024, in line with the strong growth in the domestic economy.

According to Perry, Bank Indonesia will continue to maintain the effectiveness of the implementation of KLM and strengthen synergies with the Government, financial authorities, Ministries/Agencies and banks.

"As well as business actors to encourage the distribution of bank credit/financing in big leveraged sectors to support sustainable economic growth," he concluded.