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Jakarta Post

Bank Indonesia says loan growth no more than 9% in 2016

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, December 16, 2016   /  08:53 pm
Bank Indonesia says loan growth no more than 9% in 2016 The logo of Bank Indonesia on the main gate of the central bank's headquarters in Jakarta. (Antara/File)

Bank Indonesia (BI) has affirmed that loan growth would stay in accordance with its earlier prediction of 7 to 9 percent this year, although demand was gradually increasing, a top central bank official said Friday.

“Loan growth is not going to be more than 9 percent this year,” BI Senior Deputy Governor Mirza Adityaswara told reporters after a seminar on Indonesia’s economic outlook for 2017 in Jakarta, adding that loan disbursement had shown a small increase in the fourth quarter of 2016.

Mirza said that credit growth had improved from month to month, shown by bank loan growth of 8.5 percent in November this year compared with 7.5 in the previous month, year-on-year.

A weaker outlook for loan demand in the country has prompted the central bank to revise down its double-digit loan growth forecast this year, previously at 11 to 14 percent, to single-digit targets.

Perry Warjiyo, BI deputy governor, however, said that banks would see a better situation next year as they had increased their loan provisions in anticipation of rising non-performing loans, forecasting credit growth to reach 10 to 12 percent in 2017. (win/dan)

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