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Bank Mandiri lowers 2021 credit growth forecast to 3–4%
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Cash flow: Bank Mandiri employees mark packages of Rp 100,000 (US$7.10) bills at the state-owned bank’s cash center in Jakarta on March 20, 2020. (JP/Dhoni Setiawan)
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tate-owned Bank Mandiri has lowered its credit growth outlook for this year to between 3 and 4 percent, down from 5 percent, as it takes into account the effect of recent COVID-19 mobility restrictions.
The latest credit growth outlook assumes that Indonesia’s GDP will grow by 3.69 percent this year, according to Panji Irawan, the bank’s treasury and international banking director.
“Bank Mandiri is optimistic that banking intermediaries will keep improving gradually in line with the national economic recovery,” Panji said in an online briefing on Thursday. “The collaboration among fiscal, monetary and other financial service and market authorities makes this movement coordinated, synergized and harmonious.”
The downward revision follows Bank Indonesia’s (BI) move to slash its industrywide forecast for credit growth to between 4 and 6 percent from between 5 and 7 percent following the tightening of mobility restrictions in July.
In July, loan disbursement grew only 0.5 percent year-on-year (yoy) to Rp 5.56 quadrillion (US$389.57 billion), BI data show. This is slightly slower than the nearly 0.6 percent yoy growth seen in June.
Read also: Credit growth slows, NPL ratio up slightly in July
This year’s credit growth outlook points to a recovery from last year’s 2.4 percent contraction as the pandemic forced businesses to close, reducing demand for loans.
