BI Reveals Credit Distribution Grows 13.09 Percent

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) said that bank credit growth continues to increase. As reflected in April 2024, credit distribution grew by 13.09 percent (yoy) driven by credit growth in many sectors, such as the industrial sector, business services, and trade, in line with the increasing economic growth.

Governor of Bank Indonesia (BI) Perry Warjiyo said that the high demand for credit was influenced by the supply side, in line with the maintenance of banking approaches supported by high capital, continued asset-to-credit reallocation strategies by banks, and the implementation of Macroprudential Liquidity Incentive Policy (KLM) which maintains the adequacy of banking liquidity.

"The credit growth is also supported by the increasing growth of the DPK, which reached 8.21 percent (yoy) in April 2024," he explained in a press statement, Wednesday, May 22.

Perry conveyed that in terms of demand, credit growth was supported by good corporate and household performance.

Meanwhile, based on the use group, credit growth is supported by investment credit, working capital credit, and consumption loans, which grew by 15.69 percent (yoy), 13.25 percent (yoy), and 10.34 percent (yoy), respectively.

In addition, sharia financing also grew high by 14.88 percent (yoy), while MSME loans grew by 7.30 percent (yoy).

With these developments, Perry said credit growth in 2024 will continue to increase towards an upper limit of the forecast range of 10 percent to 12 percent.

"Bank Indonesia will continue to strengthen the effectiveness of implementing accommodative macroprudential policies and strengthen synergies with the Government, KSSK, banks, and business actors to support increasing credit/financing for sustainable economic growth," he said.