JAKARTA Bank Indonesia (BI) reported that credit growth in September 2022 was recorded at 11 years on year/yoy).
BI Governor Perry Warjiyo revealed that the positive trend continued with a slick record in the previous month which grew 10.6 percent.
"Bank mediation continues to show improvement and support recovery by being supported by improvements in all types of credit and all types of economic sectors," he said during a press conference after the Board of Governors' Meeting, quoted Friday, October 21.
According to Perry, the recovery of intermediation also occurred in banking institutions that used Islamic business principles.
"Sharia financing growth is higher by 19 percent in September 2022," he said.
Perry explained, in terms of supply, the continued improvement of the bank's core business is supported by credit distribution standards that remain loose, along with improving banking approaches in the distribution of funds, especially in the industrial, agricultural, trade and construction sectors.
As for the demand side, the increase in intermediation was supported by the continued recovery in corporate and household performance.
"Corruption performance is reflected in improving payability, sales rate, and capital expenditure, especially in the trade and mining sectors," he said.
Meanwhile, household performance is reflected in improving household consumption and investment in line with consumer optimism. In the MSME segment, MSME credit growth was recorded at 17.1 percent, mainly supported by the micro segment.
"Bank Indonesia appreciates the contribution of banks in accelerating the national economic recovery through increasing lending and financing to the business world, including by keeping credit interest rates accommodative," he stressed.
Perry also said that the central bank is optimistic that intermediation performance will be stronger until the close of this year.
"By taking into account these developments and synergistic efforts made by the authorities, financial sector, and the business world, credit growth in 2022 is estimated to be in the range of 9 percent to 11 percent," concluded BI Governor Perry Warjiyo.
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