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Bankers see consumer credit growth slow
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Construction continues on a housing complex in Serpong, South Tangerang, Banten. (Antara/Audy Alwi )
B
ankers have seen consumer credit come under pressure as the end of the year approaches, following Bank Indonesia’s decision to increase its seven-day reserve repo rate by 1 percent to 5.5 percent since April to strengthen the rupiah against external pressure.
Jahja Setiaatmadja, Bank Central Asia's (BCA) president director, said interest rates would certainly affect peoples’ ability to pay installments.
“Therefore, while their intension to take consumer credit is still high, the credit growth will be between 5 to 10 percent until the end of 2018,” he said on Monday as reported by kontan.co.id.
Bank Tabungan Negara (BTN) consumer director Budi Satria held a more optimistic outlook, saying that consumer credit in the third quarter would grow 18 percent yoy.
“We will carry our more aggressive marketing, including holding a property expo on Sept. 22,” Budi said.
Meanwhile, Maybank Indonesia president director Taswin Zakaria estimated that by the end of this year, consumer credit would grow by 5 percent, arguing that people tended not to take out consumer credit in difficult times.
Lani Darmawan, consumer director at Bank CIMB Niaga, predicted consumer credit to start to slow in the fourth quarter of 2018, but expressed hope that credit would still grow significantly in the third quarter.
BI data shows that up to July, consumer credit still grew 11.3 percent yoy to Rp 11.3 trillion (US$758.55 million), supported by growth in mortgage loans. (bbn)
