BI Reveals High Demand And Supply Factors Encourage Banking Loans To Reach 13.09 Percent

Deputy Governor of Bank Indonesia Juda Agung (center). (Photo: Aris Nurjani/VOI)

JAKARTA - Deputy Governor of Bank Indonesia (BI) Juda Agung explained that bank credit growth in April 2024 reached 13.09 percent on an annual basis or year on year (yoy).

"We know in a monthly board of governors meeting (RDG) that credit growth in April was quite encouraging to grow by 13.09 percent," said Juda at the Macroprudential Liquidity Incentive Policy Media Taklimat, Monday, June 3.

Juda explained that the factors causing bank credit could grow high, due to high demand and credit disbursement in April 2024, resulting in credit growth being the highest in the last 5 years.

In addition, Juda said, from the real sector, credit demand grew high, as reflected in credit growth from the corporate sector which reached 20.32 percent.

He added that other factors came from banks that have a passion for high credit distribution.

"This is quite encouraging development. The real sector is encouraging and the banking sector has an appetite, arousal to channel credit to its real sector," said Juda.

Juda added that BI will distribute adequate liquidity to increase lending and hopes that the public's need for credit can increase in line with Indonesia's economic growth.

Previously, Bank Indonesia (BI) Governor Perry Warjiyo said that in April 2024 bank credit growth continued to increase 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.

Perry 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.

In addition, Perry said, Juda's credit growth was supported by increasing growth in the DPK, which reached 8.21 percent (yoy) in April 2024.

"In terms of demand, credit growth is supported by good corporate and household performance," he explained some time ago.

Perry said that 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.