Bank Credit Growth Reaches 10.79 Percent In November 2024

Governor of Bank Indonesia (BI) Perry Warjiyo. (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) recorded credit growth in November 2024 reaching 10.79 percent on an annual basis or year on year (yoy) or lower than the previous month of 10.92 percent (yoy).

BI Governor Perry Warjiyo said that in terms of strong demand, credit growth was influenced by the maintained interest in lending, the continued reallocation of liquid assets to credit by banks, the large amount of funding support from the growth of Third Party Funds (DPK).

"As well as the positive impact of Bank Indonesia's KLM which is distributed to priority sectors, namely the Minerba and Food Downstreaming Sector, the Automotive, Trade and Electricity, Gas and Water Sector (LGA), the Tourism and Creative Economy Sector, as well as MSMEs and green," he explained at a press conference, Wednesday, December 18.

Meanwhile, in terms of demand, Perry explained, credit growth is supported by maintained corporate business performance, including export-oriented corporations.

Based on the use group, working capital credit growth, investment credit, and consumption credit, respectively amounted to 8.92 percent (yoy), 13.77 percent (yoy), and 10.94 percent (yoy) in November 2024.

Meanwhile, Islamic financing grew by 11.24 percent (yoy), while MSME loans grew 4.02 percent (yoy).

Therefore, Perry said that with this development, credit growth in 2024 is predicted to remain in the range of 10 percent'12 percent and will increase in 2025 in the range of 11 percent'13 percent.

"Bank Indonesia continues to encourage increased credit growth, including by strengthening the KLM strategy starting January 2025 which will be directed to encourage bank credit that can support growth and job creation," he explained.