Increase Banking Credit Distribution, BI Will Synergize With Prabowo-Gibran Government

Illustration (Photo: Doc. ANTARA)

JAKARTA - Deputy Governor of Bank Indonesia (BI) Juda Agung admitted that he would continue to synergize with the government of the President and Vice President-elect Prabowo Subianto and Gibran Rakabuming Raka in increasing the distribution of bank loans.

"BI with a new government will certainly continue to synergize in maintaining stability and encouraging economic growth. In this context, credit growth," said BI Deputy Governor Juda Agung at the Macroprudential Liquidity Liquidity Incentive Policy Tax, Monday, June 3.

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

"So in the future, of course, if the economy continues to develop, credit demand increases, credit is expected to increase," he said.

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 conveyed 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 sufficient banking liquidity.

In addition, Perry said the credit growth was also 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 explained, based on the use group, credit growth was 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.

Sharia financing also grew by 14.88 percent (yoy), while MSME loans grew by 7.30 percent (yoy).

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

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.

pic : Head of the BI Macroprudential Policy Department Solikin M. Juhro (Kiri), Deputy Governor of BI Juda Agung (Central), Head of the BI Communication Department Erwin Haryono (Right) (Aris Nurjani/BI)