BCA Boss Opens Up About The Impact Of Political Year On Banking Business

President Director of BCA Jahja Setiaatmadja (Photo: Doc.VOI)

JAKARTA - President Director of PT Bank Central Asia Tbk (BBCA) Jahja Setiaatmadja revealed the impact of the political year on the banking sector business. As is known, on February 4 there will be general elections for legislative and vice presidential candidates.

Jahja said that the political year's impact had actually been reflected in BCA's credit growth from quartic to quarter grew 5.8 percent and grew 13.9 percent throughout 2023 and experienced a spike in the last quarter.

"BCA's growth credit is 5.8 percent, from 13.9 percent of our full year, up in the last quarter of 5.8 almost half of credit. Even though we know the election is getting closer. So this is one of the real signs that it is not too big (the impact)," he said, quoted by Jmat, January 26.

Jahja also emphasized that the impact of the political year is not large. In addition to being reflected in credit growth, it can also be seen from investment loans that have collapsed higher than working capital loans, which means that customers are more likely to be brave in developing their business. It is known that industrial credit growth throughout 2023 was recorded at 10 percent and banks set targets ranging from 8-10 percent.

"So I don't think it's as great as when there was no election but it can be said to be quite reasonable. Judging by the loan growth in 2023, about 10 percent of the industry and I think banks averaged 8-10 percent, not far from before," continued Jahja.

Jahja said this means that in general it can be interpreted as not developing too high but not negative or flat because people still have expectations of credit growth.

Just so you know, throughout 2023, in total, BCA credit rose 13.9 percent yoy to IDR 810.4 trillion.

As of December 2023, corporate loans grew 15.0 percent yoy to reach IDR 368.7 trillion, while commercial loans rose 7.5 percent yoy to reach IDR 126.8 trillion.

Since breaking the level of IDR 100 trillion in May 2023, SME credit has continued to grow to reach IDR 107.9 trillion by the end of 2023, or an increase of 16.0 percent yoy.

The growth in SME credit is the highest in the business credit segment. Along with the success of BCA Expo twice, KPR and KKB's new bookings have increased 2.3 and 2.6 times, respectively, in the last three years.

This achievement helped encourage the outstanding KPR to increase 11.7 percent yoy to Rp121.8 trillion, and KKB to increase by 20.8 percent yoy to Rp56.9 trillion as of December 2023.

The outstanding personal loans also grew 21.7 percent yoy to IDR 16.7 trillion, bringing the total consumer credit portfolio to 14.8 percent yoy to IDR 198.8 trillion.