BI Supports Banking To Increase Credit Distribution To Inclusive And Green Sectors

Deputy Governor of BI Juda Agung. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) supports banks to increase lending to various sectors, especially to the inclusive and green sectors to support financial and economic development that is inclusive and green.

"We direct it to increase lending to the inclusive and green sectors, so that we can maintain the balance of commercial and sustainability motives of banking financing," said BI Deputy Governor Juda Agung in the Launch and Seminar of Financial Stability Studies Number 42 in Jakarta, quoted from Antara, Thursday, March 28.

To strengthen credit disbursement in the near future, BI will strengthen the implementation of Macroprudential Liquidity Policy (KLM) by optimizing available liquidity incentives.

"Currently, there is still potential for liquidity of more than Rp. 100 trillion that has not been utilized by banks for lending," said Juda.

BI will look at sectors that can encourage productive credit growth so that the liquidity incentives provided by Bank Indonesia are really being used to boost the national economy.

The increase in economic and financial inclusion is also driven by sharia inclusive financing which grows positively both through the financial sector of sharia commercial and Islamic social finance.

BI continues to strengthen its inclusive economic and financial development strategies, through four pillar strategies, namely economic empowerment, expansion of access and financial literacy, increasing access to financing, and protecting consumers.

Di sisi intermediasi, pembiayaan inklusif menunjukkan perkembangan yang positif. Pada 2023, kredit Usaha Mikro Kecil dan Menengah (UMKM) tumbuh sebesar 8,03 persen secara year on year (yoy) dengan tingkat risiko yang terjaga, ditopang oleh dukungan program pemerintah Kredit Usaha Rakyat (KUR) serta terjaganya kinerja usaha UMKM.

Financing for MSMEs is also supported by the role of Non-Bank Financial Industry (IKNB), especially finance and fintech companies, to capture the huge potential of unbanked MSME players, including the Ultra Micro segment.

Meanwhile, to strengthen the management of bank liquidity in the midst of growth in third party funds (DPK) which is not yet too strong, BI is also working on a macroprudential policy aimed at optimizing non-traditional funding while still prioritizing adequate prudential aspects.