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View all search resultsSME lending continues to contract as overall bank loan growth cools
OJK has projected credit in the micro, small and medium enterprises (MSMEs) segment to grow between 7 percent and 9 percent this year, while overall loan growth is expected to reach between 10 and 12 percent.
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A participant arranges bags made during a fashion training program
on May 14, 2024, in Denpasar, Bali. Twenty people from micro, small and medium enterprises
(MSMEs) took part in the event organized by the Denpasar city administration. (Antara/Nyoman Hendra Wibowo)
C
redit growth in the micro, small and medium enterprises (MSME) segment remains subdued, continuing its monthslong contraction as Indonesia's banking industry posted slower loan growth in February.
Overall loan growth dropped 9.37 percent year-on-year (yoy) to Rp 8.5 quadrillion (US$499.7 billion) in February, down from 9.96 percent growth logged in January, according to the Financial Services Authority (OJK).
Meanwhile, Bank Indonesia (BI) previously reported that loan disbursement to the MSME segment remained contracted by 0.06 percent yoy in February, extending its downturn performance since October last year.
OJK has projected credit in the MSME segment to grow between 7 percent and 9 percent this year, while overall loan growth is expected to reach between 10 and 12 percent.
The OJK’s chief executive for banking supervision, Dian Ediana Rae, said at a virtual press conference on Monday that banks’ intermediary performance had continued to “grow at a positive rate with maintained risk profile”.
Investment credit recorded the highest growth among bank credit categories at 20.72 percent, while working capital and consumer loans grew by only 3.88 percent and 6.34 percent, respectively.
Read also: OJK projects MSME loans to expand 9% this year
