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Credit growth slows, NPL ratio up slightly in July
Bank Indonesia reported on Wednesday that credit growth slowed to 0.5 percent year-on-year in July from nearly 0.6 percent in June. The NPL ratio was slightly up at 3.31 percent.
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Cash flow: Bank Mandiri employees mark packs of Rp 100,000 bills at the state-owned bank’s cash center in Jakarta on March 20, 2020. (JP/Dhoni Setiawan)
B
ank Indonesia (BI) reported Wednesday that overall loan disbursement had posted slower annual growth in July than in June and that the ratio of bad loans had risen slightly amid the implementation of COVID-19 curbs.
Commercial banks disbursed Rp 5.56 quadrillion (US$386.15 billion) in July, up 0.5 percent from a year earlier and marking a slight slowdown from nearly 0.6 percent annual growth in June.
On a month-to-month (mtm) basis, credit issuance contracted 0.32 percent in July, reversing the rise seen in June.
The nonperforming loan (NPL) ratio was estimated at 3.31 percent in July, slightly higher than the 3.2 percent recorded in the preceding month.
“Credit disbursed by banks still showed positive growth, although slightly slower than a month earlier,” the central bank reported on Wednesday.
The slowdown in credit growth came at a time of tightened mobility restrictions, especially in Java and Bali, as the country faced a resurgence in COVID-19 cases and deaths driven by the highly transmissible Delta variant.
The government has been easing the restrictions in Jakarta and some other places since Monday.
