OJK Records Banking Credit Disbursement Of IDR 7,508 Trillion Until August 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that bank credit disbursement until August 2024 reached IDR 7,508 trillion, an increase of 11.4 percent on an annual basis (yoy).

OJK Banking Supervision Chief Executive Dian Ediana Rae said bank credit growth in August was lower than the growth in July 2024 which reached IDR 7,515 trillion.

"Credit growth as of August 2024 still continues its double-digit growth record of 11.40 percent, last July it was still recorded at almost the same figure as 12.40 percent to Rp7,508 trillion," he said at a press conference at the OJK Board of Commissioners Meeting, Tuesday, October 2.

Dian said that until August 2024, the total banking Third Party Funds (DPK) were recorded at IDR 8,650 trillion, an increase of 7.01 percent (yoy). Meanwhile, the growth of the DPK in August was lower than the growth in July which was recorded at IDR 8,687 trillion.

According to Dian, this phenomenon reflects a higher business expansion than the need for fund storage for business actors. This also marks the normalization of the business world.

"The increase in economic activity on the other hand encourages public consumption, so that it also affects the deposits of people's DPK in banks," he said.

Dian said that year to date (ytd), bank credit growth grew 5.89 percent (ytd), while bank credit was recorded at minus 0.09 percent on a monthly basis or month to month (mtm).

Meanwhile, the ratio of bad credit or non-performing loans (NPL) was 2.26 percent, or decreased when compared to NPL in July which was recorded at 2.27 percent.

Meanwhile, the aspects of banking profitability, Net Interest Margin (NIM) and Return on Investment (ROA) were recorded at 4.60 percent and 2.69 percent, respectively.

"The province of the banking industry in August 2024 is very adequate even though it is moderated to the ratio of AL/NCD and AL/DPK of 112.92 percent, last July it was recorded at 113.49 percent, and 25.37 percent, while last July it was 25.56 percent. Still above the threshold of 30 percent and 10 percent, respectively," he said.