OJK chairman Muliaman Hadad said the amount of the banks’ total assets would grow by 11.28 percent to Rp 7.35 quadrillion (US$547.07 billion) in 2017. The total loan would amount to Rp 4.99 quadrillion, or up by 13.25 percent, while the third party fund would increase by 11.94 percent to Rp 5.3 quadrillion.

“The banks’ business plans have still shown some optimism,” he said at the year-end press conference at the OJK office in Jakarta on Friday.

Muliaman further explained that as of November, the banking industry loan grew by 8.46 percent year-on-year (yoy) to Rp 4.29 quadrillion while the third party fund increased by 8.4 percent to Rp 4.73 trillion.

He said it was predicted that the non-performing loans (NPL), which had become a problem in 2016, would decrease in 2017. The NPL, which stood at 3.18 percent in the third quarter of 2016, would hopefully decrease to 3.04 percent in the fourth quarter and decline further to 2.76 percent at the end of 2017.

“Many of the NPLs in 2016 were carried over from 2015, hence, we hope loan restructuring can be finished in the middle of 2017,” Muliaman said. (ebf)

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