JAKARTA - Bank Indonesia (BI) revealed that the flow of bank credit was still pouring down. This is reflected in the high credit distribution, which grew by 12.15 percent on an annual basis or year on year (yoy) in May 2024.
Governor of Bank Indonesia (BI) Perry Warjiyo said credit growth was driven by credit growth in most sectors of the economy, especially Trade, Industry, and Business Services.
Meanwhile, in terms of supply, interest in lending was maintained, supported by an increase in the DPK to 8.63 percent (yoy) and continued the strategy of reallocating liquid assets to credit by banks as well as liquidity support in line with the implementation of the Macroprudential Liquidity Incentive Policy (KLM) by Bank Indonesia.
Perry conveyed that in terms of demand, credit growth was influenced by good corporate and household performance.
"The growth in sales and corporate capital expenditures remains positive, thus encouraging the financing needs of working capital and investment," he explained, quoted on Sunday, June 23.
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Meanwhile, Perry explained that household consumption remains strong, especially from the middle and upper class, along with the increased expectations of income.
Meanwhile, Perry said that based on the use group, credit growth was supported by investment credit, working capital credit, and consumption credit, which grew by 14.80 percent (yoy), 11.59 percent (yoy), and 10.47 percent (yoy) in May 2024, respectively.
Meanwhile, sharia financing grew by 14.07 percent (yoy), while MSME loans grew by 6.74 percent (yoy).
With these developments, Perry said that credit growth in 2024 is predicted to be at an upper limit of 10 percent to 12 percent.
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