Double Digit Consistent Credit Growth, All Sectors Experienced An Increase

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) stated that bank credit growth in December 2022 was at 11.3 percent on an annual basis or year on year (yoy).

This level continues double-digit consistency after previously in November 2022 credit growth perched at 10.8 percent.

"The increase in credit growth has occurred evenly in all economic sectors and all types of credit, especially investment loans and working capital loans," said BI Governor Perry Warjiyo when giving a presentation to the media crew, Thursday, January 19.

Perry explained that even higher rates occurred in Islamic banking with financing growth of 20.1 percent in December last year.

This score shot up compared to the 2021 achievement of 6.6 percent.

In detail, in the MSME segment, credit growth continues to show poor performance, especially in the distribution of People's Business Credit (KUR), which increased by 29.6 percent.

Perry said the improvement in banking intermediation was supported by the supply side of credit in line with adequate banking liquidity and loose credit/financing standards.

"Demand for credit has also increased in line with the improved performance of corporations and household consumption which has boosted demand for financing," he said.

Going forward, continued Perry, Bank Indonesia will continue macroprudential policies that are accommodative, inclusive and sustainable.

"All are aimed at encouraging the growth of banking credit/financing to priority sectors that have not yet recovered, to People's Business Credit, and green credit/financing, in order to support economic recovery," he stressed.