GOVERNOR of Bank Indonesia (BI) Perry Warjiyo revealed that banking credit grew high by 11.28% year on year (yoy) in February 2024. The increase in credit mainly occurred in the agricultural, mining, construction, trade, social services and business services sectors. .
“From the supply side, high credit growth is supported by maintained banking appetite which is supported by capital and liquidity availability,” he said in an online press conference, Wednesday (20/3).
From the demand side, he continued, credit growth is supported by the performance of households and corporations which is predicted to continue to increase following the 2024 election.
Perry explained that the availability of banking liquidity was reflected in the high ratio of Liquid Assets to Third Party Funds (AL/DPK) of 27.41% which was supported by Bank Indonesia’s Macroprudential Liquidity Incentive Policy (KLM).
Based on usage groups, credit growth was supported by investment credit, working capital credit and consumption credit amounting to 11.82% (yoy), 12.04% (yoy) and 9.70% (yoy) respectively in February 2024.
“Meanwhile, MSME credit grew by 8.85% (yoy),” said the BI Governor.
Also read: Bank Indonesia Maintains Reference Interest Rate at 5.75%
He added that to achieve the 2024 credit growth target amidst the February 2024 deposit growth of 5.66% (yoy), banks are continuing their asset reallocation strategy and optimizing funding pricing.
Banks are also optimizing other sources of funding, such as loans, issuing long-term debt securities and share rights issues.
“In the future, credit growth in 2024 is expected to increase and be in the range of 10-12%,” explained Perry.
Bank Indonesia, he added, will continue to strengthen the effectiveness of implementing accommodative macroprudential policies, and increase synergy with the government, financial authorities, ministries/institutions, banking and business players. (Ins/Z-7)
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