Banking Credit Grows Eight Percent In February

INDUSTRY.co.id - Jakarta - Bank Indonesia said that banking loan portfolio in February 2018 grew eight percent (year-on-year / yoy), which indicated a widening of credit from the corporate sector.

Deputy Governor of Bank Indonesia Erwin Rijanto said on Friday (16/3/2018) that the corporation is beginning to complete its internal consolidation post-2017 refraining from expansion.

As a result, bank credit in the second month grew higher, compared to January 2018 which amounted to 7.4 percent (yoy) or Rp4661 trillion.

"The corporation has finished its consolidation and started its credit pickup in February," Erwin said.

Although credit grew, Erwin admitted, the amount is not optimal. If seen during the year that occurred or from 1 January until the end of February 2018, new loans grew 0.4 percent (year to date / ytd).

"The year to date is down 0.4 percent, which was at one percent to 0.4 percent, we expect the third month will pick up," he said.

Erwin claims optimistic at the end of the first quarter of 2018, withdrawal of credit will be greater. In addition to the debtors that have completed the consolidation, the asset quality reflected in the Bank's non-performing loan (NPL) ratio has also declined.

"It is also a reason for banks to boost their loan portfolio this year, so credit growth this year will be better than last year," he said.

In addition, the recovery of economic growth in the first quarter of 2018 will also boost credit. The Central Bank previously projected economic growth in the first quarter of 2018 will be higher at 5.01 percent (yoy) or the realization of the first quarter of 2017.

"Yes February NPL (non performing loan / problem loans) down again If from the NPL side I think it is very significant, we live only moment of economic growth. If the economy grows, surely will come back again from the construction and consumption start pickup increase again," he said.

The Central Bank projected that bank credit could grow 10-12 percent this year, after 2017 only grew by eight percent. While the banking industry, in the Bank Business Plan (RBB) submitted to the Financial Services Authority, projected credit growth could reach 12.22 percent (yoy). (Ant)