BI pushes loan growth down to 9-11%

BI pushes loan growth down to 9-11%

Bank Indonesia Governor Perry Warjiyo (antaranews.com)

The projection is lower than the previous 10 to 12 percent projection, in line with the revision of economic growth projection in 2020
Jakarta (ANTARA) - Bank Indonesia (BI) has revised loan growth in 2020 from 10 to 12 percent to 9 to 11 percent, stating that this is a short-term impact of the COVID-19 outbreak that could affect Indonesia's economy.  

"The projection is lower than the previous 10 to 12 percent projection, in line with the revision of economic growth projection in 2020," BI's Governor Perry Warjiyo said here Thursday.

The risk of coronavirus has forced BI to revise the economic growth downwards in 2020 between 5.0 and 5.4 percent, from its previous projection of 5.1 to 5.5 percent.

"The revised projection is specifically due to the short-term impact of the COVID-19 outbreak to the global economic recovery," he added.

The coronavirus outbreak has affected the national economy in three sectors namely tourism, trade and investment.

The economic condition is expected to recover in 2021 and boost the loan growth to reach between 10 and 12 percent.

BI has also predicted that third-party funds in 2020 and 2021 will stay between 8 and 10 percent.

BI would continue to make an accommodative macro-prudential policy and strengthen the coordination with related institutions to maintain the financial system stability and encourage banking intermediation. (INE)
Related news: BI lowers benchmark interest rate to 4.75%
Related news: BI upbeat about 5.5 percent economic growth despite coronavirus threat

 

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