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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsLocal banks see uptick in loan growth in March
Credit growth rebounded to 9.49 percent year-on-year (yoy) last month from the 9.37 percent logged in February. The latest figure, however, is still lower than the 9.96 percent yoy growth recorded in January.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
People sit on July 30, 2024, in a park in South Jakarta with a view of the city’s Sudirman Central Business District (SCBD). (Reuters/Ajeng Dinar Ulfiana)
B
anking loan growth slightly accelerated in March after recording a slowdown in the previous month, according to Bank Indonesia (BI).
Credit growth rebounded to 9.49 percent year-on-year (yoy) last month from the 9.37 percent logged in February. The latest figure, however, is still lower than the 9.96 percent yoy growth recorded in January.
The increase in March was driven by rising bank credit across all categories, with investment loans posting the highest growth at 20.85 percent, followed by consumer credit at 5.88 percent and working capital loans at 4.38 percent.
“Bank Indonesia estimates that the loan growth in 2026 will be maintained in the range of 8 to 12 percent, supported by the demand and supply sides,” BI Governor Perry Warjiyo said on Wednesday.
On the demand side, he explained that there was still room for greater use of bank financing, given the persistently high volume of approved but undisbursed loans, which reached Rp 2.5 quadrillion (US$145.4 billion), 22.59 percent of total credit lines.
Meanwhile, on the supply side, Perry noted that banks’ capacity to extend loans remained adequate. According to him, local banks continue to show a strong appetite for disbursing loans by maintaining lenient lending requirements, except for the micro, small and medium enterprise (MSME) and consumer segments, as the risks in both segments remained high.
In a report published on Thursday, the central bank stated that loan disbursement to the MSME segment inched up by 0.1 percent in March, marking a marginal increase after a months-long contraction.
