JAKARTA. The regulators, such as BI (the Central Bank), Financial Services Authority (FSA) and the Deposit Insurance Agency (LPS) projected that bank’s credit in 2017 that will only grow slightly from the realization in 2016.
Doddy Ariefianto, Director of Financial Risk and Banking Financial System Group at the LPS predicted credit growth in the next year will be around 9%, compared to this year's forecast that ranging around 8%-9%. The economic outlook is predicted to grow by 5.1%, causing credit demand remains stagnant, said Doddy, Wednesday (16/11).
Although it began to decline, the ratio of non-performing loans (NPLs) are still high, causing banks more careful in allocating credit.
Doddy said that the credit allocation will still be supported by consumer and manufacturing credits. The consumer credit includes housing ownership credit (KPR) and motor vehicle credit(KKB).
Meanwhile, credit allocation will also be supported by construction credit, thanks to the massive government infrastructure programs. In the other hand, FSA predicted that banking credit will grow by two digits in 2017, ranging around 9%, compared to only 6%-7% in this year.
Commissioner Board of Banking Affairs at the FSA Nelson Tampubolon said that some factors will support the credit alocatin in 2017, such as the improvements in commodities prices.
This certainly brings hope for the banks, since the credit growth in the recent years tended to go down, even dropped to the lowest level in this year. Citing data from the Indonesian Banking Statistics (SPI), bank credit stood at Rp 4,243.80 trillion per September 2016, or grew by 6.34% compared to the Rp 3,990.46 trillion as of September 2015.
BI is more optimistic
Compard to FSA and LPS, BI has more optimistic prediction over the target of credit growth in 2017. BI predicts that the bank credit will grow around 10%-12% in 2017, while the target of credit growth in 2016 is only at one digit, ranging from 7%-9%. BI assumes that the credit growth at the end of the year will be 8% at the highest.
Executive Director of Economic and Monetary Policy Department at BI Juda Agung previously said that the corporations tended to hold from taking credits so that the credit growh was low.
(Muhammad Farid/Translator)
