BI Boss Optimistic Banking Credit To Reach 12 Percent In 2024

Photo: Aris Nurjani/VOI

JAKARTA - Bank Indonesia (BI) is optimistic that credit growth in 2024 is expected to increase in the range of 10 percent to 12 percent.

Bank Indonesia Governor Perry Warjiyo said that in the future, Bank Indonesia will continue to strengthen the effectiveness of the accommodative implementation of macroprudential policies, and increase synergy with the Government, financial authorities, Ministries/Institutions, banks, and business actors.

Meanwhile, banking credit in early 2024 grew high by recording credit growth in January 2024 11.83 percent (yoy), driven by the strong supply and demand side

"In terms of supply, the strong banking capital capacity and adequate liquidity also support credit increases," he said at the press conference of the RDG February 2024, Wednesday, February 21, 2024.

Perry said that the availability of banking liquidity was reflected in the high ratio of AL/DPK by 27.79 percent and was also supported by the Bank Indonesia's macroprudential liquidity incentive (KLM) policy, especially for banks that channel credit to priority sectors.

To respond to funding gaps in line with DPK growth of 5.80 percent and in order to maintain credit disbursement capacity, banks are pursuing two main strategies, namely reallocation of liquid assets from securities and strengthening non-DPK funding.

Perry said the Bank has a preference to encourage lending in the potential sector which is an explicit bank and according to the risk appetite, including the Large and Retail Trade Sector, Industry, Agriculture, Business Services, and Consumption.

"In general, these sectors show good corporate business performance, encouraging the maintenance of the ability to pay," he explained.

Berdasarkan kelompok penggunaan, pertumbuhan kredit ditopang oleh kredit investasi dan kredit modal kerja, masing-masing sebesar 13,39 persen (yoy) dan 12,26 persen (yoy), diikuti kredit konsumsi yang tumbuh sebesar 9,64 persen (yoy).

Meanwhile, in terms of demand, credit increase is driven by maintained performance of corporations and households. Meanwhile, sectorally, credit growth mainly occurs in the Mining, Social Services, and Business World Services sectors.

Meanwhile, Islamic financing continues to grow high, reaching 15.67 percent (yoy) in January 2024, while MSME loans grow by 8.97 percent (yoy).