Banking Credit Grows 12.4 Percent In July 2024, Driven By Investment Distribution

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said credit growth in July 2024 reached 12.40 percent (yoy).

"Credit growth in July 2024 remains strong reaching 12.40 percent (yoy). This development is supported by the supply side, where interest in lending is maintained," he said at a press conference, Wednesday, August 21.

Perry conveyed that based on the use group, credit growth was supported by investment credit, working capital credit, and consumption credit, which grew by 15.20 percent (yoy), 11.60 percent (yoy), and 10.98 percent (yoy) in July 2024, respectively.

"Sharia financing and MSME credit grew by 11.75 percent (yoy) and 5.16 percent (yoy), respectively. With this development, credit growth in 2024 is predicted to be at an upper limit of 10 percent to 12 percent," he said.

Credit development is also supported in terms of supply, according to Perry where interest in lending is maintained as reflected in the growth of the DPK in July 2024 of 7.72 percent (yoy), the reallocation strategy of credit liquid assets by banks, and the support of Bank Indonesia's Macroprudential Liquidity Incentive Policy (KLM).

"To strengthen funding, banks also optimize funding sources other than from the DPK, including through the issuance of securities and loans," he explained.

Perry explained that in terms of demand, he also supports credit growth sourced from corporate demand in line with strong sales performance. Meanwhile, household credit demand is still high, especially at mortgages.

"Sectorally, high credit growth occurs in the majority of the economic sector, especially in the industrial, electricity, gas and water (LGA) sectors, and transportation," he said.