OJK Projects Loans To Grow At Maximum 5 Percent This Year, Consumption Loans And Working Capital Are Supporters

Illustration (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso estimates that bank credit will be on a positive growth path throughout 2021.

"We estimate credit growth this year will be in the ring of 4 percent to 5 percent," he said during a virtual press conference of the Financial System Stability Committee (KSSK), Wednesday, October 27.

According to Wimboh, this projection can still be achieved in the remaining two months before the close of the 2021 financial year.

"There are still a few months for October, November, and December so we hope to achieve the target," he said.

In detail, the OJK boss explained that until the third quarter of 2021, bank credit grew 2.21 percent year-on-year (yoy) or 3.12 percent year-to-date (ytd).

This achievement was supported by working capital loans which grew by 2.85 percent yoy, investment loans by 0.37 percent yoy and consumption loans by 2.95 percent yoy.

"The results that occurred in the third quarter increased compared to the end of the second quarter of 2021, along with a decrease in daily COVID-19 cases and an increase in economic activity," he said.

Meanwhile, other increases also occurred in household loans, which rose 2.77 percent ytd, trade sector credit grew 2.43 percent, and manufacturing sector loans grew 2.05 percent.

In terms of liquidity, third party funds (DPK) as of September 2021 were observed to grow 7.69 percent yoy or 7.45 percent ytd.

Meanwhile, the ratio of non-performing loans (NPL) on a gross basis is at the level of 3.22 percent (net NPL: 1.04 percent) from the previous 3.24 percent (net NPL: 1.06 percent) in June 2021. .

"Banks contribute to accelerating the national economic recovery," concluded OJK Chairman Wimboh Santoso.