BI Predicts Banking Loans To Grow At The Upper Limit Of 10 Percent To 12 Percent

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia (BI) estimates credit growth in 2024 will be at an upper limit of 10 percent to 12 percent.

BI Governor Perry Warjiyo conveyed that the estimated credit growth throughout 2024 was driven by credit performance in the second quarter of 2024 which was 12.36 percent (yoy).

Perry explained that credit growth in the second quarter of 2024 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, Perry explained that credit requests from households were also maintained stable, especially from the upper-middle class, along with expectations of maintained income.

"The high credit growth occurs in most economic sectors, especially in industry, trade, and transportation," he explained.

Meanwhile, based on the use group, Perry said 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.

"Meanwhile, sharia financing grew high by 13.61 percent (yoy), while MSME loans grew by 5.68 percent (yoy)," he said.