JAKARTA. Deregulations on credit are less effective to raise the demand on credit. Deputy Governor of BI (the Central Bank) Erwin Riyanto said that credit allocation is still slow. The newest data from BI show that as of August 2016, credit allocation only grew by 6% to IDR4,148 trillion compared to the same month in August 2015. In monthly basis, credit allocation growth in August 2016 is lower than the level of 7.72 % of growth in July 2015.
According to Erwin, recently an export-oriented company prefers to avoid making new domestic and foreign debts. Therefore, this caused the allocation of foreign exchange credit became stagnant. “The businessmen prefer pay off the debt earlier than scheduled”, Erwin said.
Meanwhile, Rupiah denominated credit grew by 9.8% during August 2016. BI predicted that the credit will grow in the range of 7%-9% by the end of 2016. It is predicted that non-performing loan or NPL rate tends to increase, but still moves at the level of below of 3%.
President Director of PT Maybank Indonesia Tbk Taswin Zakaria admitted that the bank has not yet met the target of credit allocation at two-digit growth. “Maybank’s credit grows 7% annually”, Taswin said.
Under the situation, this Malaysian-owned bank revised down the target of credit allocation growth from two digits to 9%. In order to achieve the target, Maybank will focus on allocating credit to the segments of small and medium enterprises (UKM), as well as retail sector.
Relies on micro, small, and medium enterprises
Number of banks will focus on micro, small, and medium enterprises (UMKM) segment in order to increase the credit allocation growth. Financial Director of PT Bank Rakyat Indonesia Tbk (BRI) Haru Koesmahargyo is confident that the bank still can book double digit growth.
Recently, BRI’s credit allocation grew by 17%, mainly contributed by the segments of UMKM and people’s credit business (KUR). “BRI predicts that credit allocation will grow by 15% by the end of the year”, Haru said.
Meanwhile, PT Bank Pembangunan Daerah Jawa Barat Banten Tbk (BJB) expects the credit allocation will grow by 13%-14% by the end of 2016. The bank itself will focus on allocating credit to micro business sector.
BJB targets to maintain the credit allocation growth at the level of 7%. The bank also targets the credit allocation for infrastructure sector will hike by 50%. BJB itself has massively allocated credit on the construction projects of toll road, airport, and Light Rail Transit (LRT).
BI is optimistic that credit allocation will grow by 11% in the next year under the assumption of 5.1% of economic growth in 2017. The regulator has also relaxed regulation on credit allocation by reducing down payment of house ownership credit (KPR) from 20% to 15%. (Translator: Muhammad Farid)
Editor: Sanny Cicilia