“The increase in credit growth has occurred evenly in all economic sectors and all types of credit, especially investment loans and working capital loans,” said BI Governor Perry Warjiyo while announcing the results of the January meeting of the central bank’s board of governors, which was followed online from Jakarta on Thursday.
The demand for credit increased due to an improvement in corporate performance and household consumption, which pushed up demand for financing, he informed.
Improvements in banking intermediation were also supported by the supply side of credit, in line with adequate banking liquidity and lax lending or financing standards.
Moreover, intermediation recovery was also seen in Islamic banking, with financing growth in December 2022 growing to 20.1 percent yoy from 6.6 percent in the year-ago period, he said.
Credit growth also continued in the micro, small, and medium enterprise (MSME) sector, specifically in the distribution of People's Business Credit (KUR), which grew by a significant 29.66 percent yoy, he informed.
Bank Indonesia will continue with its accommodative, inclusive, and sustainable macroprudential policies to encourage the growth of banking credit or financing for the priority sectors that have not yet recovered, KUR, and green credit to support economic recovery, he said.
With these developments and policy synergy carried out by the authorities, financial sector, and business world, credit growth in 2023 is projected to be in the range of 10–12 percent yoy.
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Translator: Cindy Frishanti Octavia
Editor: Sri Haryati
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