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View all search resultsWhile the revision is seen as a potentially effective measure to bolster inclusive funding, experts warn that it may distort Indonesia’s banking industry focus from commercial lending to national development.
OJK has projected credit in the micro, small and medium enterprises (MSMEs) segment to grow between 7 percent and 9 percent this year, while overall loan growth is expected to reach between 10 and 12 percent.
The OJK as well as industry observers have welcomed the Finance Minister's move to extend the liquidity injection policy for another six months in a bid to generate higher loan growth, while suggesting that a subsequent extension could be on the books when the current period ends in March.
Credit growth rose 7.74 percent year-on-year (yoy) to Rp 8.3 quadrillion (US$493 billion) in November, accelerating from growth of 7.36 percent yoy in October, according to the Financial Services Authority (OJK).
A consolidation push in the banking industry looks set to make small lenders targets of mergers and acquisitions as the Financial Services Authority (OJK) wants to eliminate the lowest core capital category, which currently dominates the industry.
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