BI Boss Says Credit Growth Grows 12.36 Percent In The Second Quarter Of 2024

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) revealed that credit growth in the second quarter of 2024 remained high at 12.36 percent (yoy) driven by strong supply and demand sides.

BI Governor Perry Warjiyo said credit growth was driven by strong supply and demand sides. As for the supply side, interest in lending is maintained, supported by strong growth in the second quarter of 2024 DPK of 8.45 percent (yoy).

"The strategy of reallocating liquid assets to credit continues by banks, as well as support for Bank Indonesia's Macroprudential Liquidity Incentive Policy (KLM)," he said at a press conference, Wednesday, July 17.

Meanwhile, in terms of demand, credit growth is influenced by demand from corporations in line with sales performance that remains high and payability that remains strong.

Meanwhile, demand for credit from households is also maintained stable, especially from the upper-middle class, along with expectations of maintained income.

Perry explained that the high credit growth occurred in most economic sectors, especially in industry, trade, and transportation.

Meanwhile, based on the use group, credit growth was supported by investment credit, working capital credit, and consumption credit, which grew by 15.09 percent (yoy), 11.68 percent (yoy), and 10.80 percent (yoy) in the second quarter of 2024, respectively.

Perry conveyed that Islamic financing grew by 13.61 percent (yoy), while MSME loans grew by 5.68 percent (yoy).

"With these developments, credit growth in 2024 is predicted to be at an upper limit of 10-12 percent," he said.