BI Predicts Credit Growth To Reach 13 Percent By 2025

Director of the Macroprudential Policy Department of Bank Indonesia Nugroho Joko Prastowo (right). (Photo: Aris Nurjani)

ACEH - Bank Indonesia (BI) projects that this year's bank credit growth will grow in the range of 11 percent to 13 percent.

Director of the BI Macroprudential Policy Department Nugroho Joko Prastowo said that higher growth was believed after the central bank cut the BI Rate in January 2025.

"We predict credit growth to reach 11 percent-13 percent. This is indeed a challenge, with Trump and his policies," he said in a media briefing at the BI Regional Representative Office in Banda Aceh, Friday, February 7.

According to him, one of the steps taken to support this is the reduction in interest rates in January. This step is expected to provide support and increase optimism, because it will encourage increased credit demand.

In addition, Joko said that the current banking condition is also quite good and is able to survive to continue disbursing credit and from Bank Indonesia's assessment, the banking sector still sees credit risk as quite under control.

Joko said that the credit requirements set by the bank are still supportive, as can be seen from the loose credit requirements index, which is in line with adequate banking liquidity to provide credit.

"This banking liquid device is still high, 25.6 percent. This means that before Covid had 18 percent of it, while COVID-19 had increased because credit grew negatively, Third Party Funds (DPK) grew high," he added.

Joko said that when the recovery process was disbursed, the funds were transferred to credit, so that currently it has reached 25.6 percent, which is still relatively high.

If banks want to disburse more credit, they can sell Government Securities (SBN) and other instruments to be transferred to credit, as capacity for that is still available.

Meanwhile, the Capital Adequacy Ratio (CAR) of Bank is still high, at 26.87 percent. Meanwhile, Non Performing Loan (NPL) is also controlled at a low level.