TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Bank Indonesia revises down credit growth projection
Change Size
Bank Indonesia Governor Agus Martowardojo (JP/Anton Hermansyah)
B
ank Indonesia has revised down its projection for the credit growth of banks to between 8 to 10 percent, from 10 to 12 percent, because of the low demand for credit.
Credit grew 7.78 percent in September, slightly higher than the 7.75 percent growth recorded in June, but total growth from Jan. 1 to Sept. 30 was only 3.8 percent, BI Governor Agus Martowardojo said on Thursday, as reported by kontan.co.id.
“Therefore, we see that by the end of this year, banks will try to achieve their business plans, but the realization will be about 8 to 10 percent,” Agus said.
The demand for loans was lower than BI's previous estimate because many corporations had only just finished consolidation, he said.
“They want to ensure their balances are healthy. Therefore, they have not proposed increasing credit. They will study the global economy first,” Agus added.
Banks were also consolidating to keep the quality of their loan disbursement, he added.
Agus said BI supported the loan disbursement by keeping the counter cyclical buffer (CCB) at 0 percent.
BI Deputy Governor Erwin Riyanto explained that the CCB is a macro-prudential instrument to control credit disbursement.
“If credits grows too high, banks have to add capital. Currently, growth is low, thus the CCB does not need to be increased. Meaning banks do not need to add capital,” he added. (bbn)
