Bank Indonesia predicts credit growth in 2015 to reach 11%

Bank Indonesia predicts credit growth in 2015 to reach 11%

Perry Warjiyo. (ANTARA/Andika Wahyu)

This is what we see from the dynamics of banking credit."
Jakarta (ANTARA News) - The Indonesia's Central BankBank Indonesia has predicted that credit growth in the banking industry will reach between 10 to 11 percent in 2015.

"As per the latest figure, it was at 9.8 percent in November, while there was a slight increase in December," deputy governor of the central bank, Perry Warjiyo, said at his office here on Friday.

He said the slow bank credit growth was inseparable from the slow domestic economic growth.

"This is what we see from the dynamics of banking credit. If the economy slows down, so will credit growth," he said.

Perry said because of the economic slowdown, the relaxation of BI policies such as loan-to-value and minimum reserves requirements, have been unable to boost credit growth because demand has not yet increased.

"The fiscal stimulus only happened in the third and fourth quarter. But the stimulus in the first quarter (of next year) will be faster and demand will rise," he said.

He said this would give a signal that demand will rise and bank capacity would improve in terms of liquidity of interest rate.

"That is why we predict that lending growth this year will reach between 12-14 percent," he said. ***3***

(Reporting by Citro Atmoko/Uu.H-YH/INE/KR-BSR/A014)

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