OJK Optimizes Banking Credit To Stay Growing In 2023

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae is optimistic that bank credit distribution will continue to grow in 2023, as can be seen from credit distribution in October 2022 which is still growing 11.9 percent on an annual basis.

"Actually, if there is nothing extraordinary worsening globally, we can maintain this credit growth next year," he said after the opening of the 50th ASEAN Banking Council (ABC) meeting in Labuan Bajo, East Nusa Tenggara, quoted from Antara, Friday 2 December.

Previously, Bank Indonesia said that bank credit grew 11.95 percent on an annual basis in October 2022, supported by increases in all credit segments and in almost all economic sectors.

In addition to lending, the performance of the banking industry is believed to continue to grow in 2023 due to the growth of Third Party Funds (DPK) which still shows an increasing trend.

"We hope, with conditions getting better globally, as we know The Federal Reserve (The Fed) states that it will no longer raise interest rates aggressively, meaning inflation is under control," he said.

China is expected to start easing its zero covid policy so that supply chain disruption will also decrease. MOVEd economic activity is expected to boost demand for credit that boosts banking performance.

Investment in the banking sector will also still grow because investors still have great interest in this sector.

"Next week I will receive guests who want to invest in the banking sector. So our banking sector is still the prima donna, actually if it is judged globally and regionally in Asean," he said.