OJK Reveals Credit Distribution In April 2024 Capai IDR 7,310 Trillion

Rupiah (photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that in April 2024 credit distribution grew double digits, which amounted to 13.09 percent year on year (yoy) or to Rp7,310 trillion.

OJK Banking Supervision Chief Executive Dian Ediana Rae said the significant credit distribution continued the trend of credit growth since the previous period and was in line with the growth target for 2024.

"This good credit growth trend shows the high support and commitment of banks in supporting economic growth," he explained at a press conference on the results of the OJK Board of Commissioners Meeting in May 2024, Monday, June 10.

Dian said that based on the type of use, investment credit grew the highest at 15.69 percent (yoy). Meanwhile, in nominal terms, the largest was Working Capital Credit which reached IDR 3,319.15 trillion.

Meanwhile, when viewed from bank ownership, BUMN Bank is the main driver of credit growth, which is 15.42 percent (yoy).

In line with credit growth, Third Party Funds (DPK) also experienced positive growth. In April 2024, DPK recorded a growth of 8.21 percent (yoy) to Rp8,653 trillion, with the demand being the largest growth contributor, namely 11.81 percent (yoy).

Meanwhile, the performance of the banking industry as of April 2024 remains resilient and stable supported by a profitability rate (ROA) of 2.51 percent and an NIM of 4.56 percent. Banking capital (CAR) is still at a relatively high level of 25.99 percent, becoming a solid risk mitigation cushion in the midst of global uncertainty conditions.

Meanwhile, banking industry liquidity in April 2024 was adequate with the Liquid Equipment/Non-Core Deposit (AL/NCD) ratio and Third Party Liquid/Department (AL/DPK) ratios of 113.9 percent and 25.6 percent, respectively, above the threshold of 50 percent and 10 percent, respectively.

"This condition is in line with global liquidity which is quite strict amid the policy of the US central bank which maintains high interest rates (high for longer)," he said.

Then, the credit quality is maintained with a gross banking NPL ratio of 2.33 percent and a net NPL of 0.81 percent. Meanwhile, NPL gross MSMEs in April 2024 were recorded at 4.26 percent and NPL net 1.54 percent.

Dian conveyed that the increase in MSME gross NPL was mainly in the small and micro credit segment which rose to 3.89 percent in April 2024 (March 2024: 3.65 percent).

"Even so, banks have anticipated the increase in MSME NPL by establishing MSME credit CKPN of IDR 85.5 trillion and the comparison between the total MSME CKPN to the total MSME NPL reached 137.37 percent," he said.