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Indonesia's banking industry eyes higher loan growth next year
Several banks have upped their loan growth targets for the coming year as they aim to increase lending on the back of a recovering economy.
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Endless resource: An employee counts cash at a money changer in Jakarta. Indonesia’s banks expect faster loan growth in 2022 after a marked performance improvement in late 2021. (Antara/Rivan Awal Lingga)
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fter reviewing their third-quarter performance, Indonesia’s largest banks have raised their loan growth targets for next year on the expectation of further economic recovery.
The COVID-19 caseload has been relatively low for several weeks, allowing the government to ease restrictions on business and leisure activities, which could unlock new economic growth.
State-owned Bank Negara Indonesia (BNI) and state-owned mortgage lender Bank Tabungan Negara (BTN) lead the industry with the highest loan growth projections for next year, the former aiming for 7 to 10 percent and the latter estimating double-digit growth.
Bank Rakyat Indonesia (BRI), another state-owned lender, aims for 8 percent loan growth in 2022, slightly higher than this year’s target of 6 to 7 percent.
However, Indonesia’s largest bank by assets, state-owned bank Mandiri, said its projection would follow the country’s GDP growth target that sits around 5 percent, implying it might be close to this year’s 6 percent target.
Meanwhile, Indonesia’s largest private lender, Bank Central Asia (BCA) has not announced a target for next year, saying only it believed loan disbursement would be better than in 2021.
Read also: Bank Mandiri lowers 2021 credit growth forecast to 3–4%
