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BI expects rapid loan growth in 2022
The central bank sees credit growing between 6 and 8 percent and year and third-party funds rising 7 to 9 percent.
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A pedestrian passes the Bank Indonesia building in Central Jakarta in this undated photo. The central bank expects a significant acceleration in loan disbursement next year. (JP/Wienda Parwitasari)
B
ank Indonesia (BI) forecasts a significant acceleration in loan disbursement next year as it plans to encourage banks to reduce excessive liquidity and spur lending to buoy a recovering economy.
Credit growth is forecast to stand between 6 and 8 percent next year, picking up from between 4 and 6 percent this year, according to BI Governor Perry Warjiyo.
“The credit offers from banks remain relatively conducive; interest rates are falling, liquidity is abundant and lending standards are improving,” Perry said in his annual speech on Nov. 24. “Our policy focus is on spurring credit demand from businesses.”
The announcement comes at a time when credit growth has been improving after the Delta wave of the coronavirus in the country peaked in July. The outbreak prompted BI to revise downward its credit growth outlook for this year from the earlier projection of 5 to 7 percent.
Loan disbursement grew by 3.24 percent year-on-year (yoy) to Rp 5.65 quadrillion in October, the latest BI data show.
Read also: Bank Mandiri lowers 2021 credit growth forecast to 3–4%
Several sectors are ready to increase borrowing, according to Perry, including horticulture, crops and tobacco, manufacturing, wood and furniture, paper, manufacturing, food and beverages as well as metal mining.
