JAKARTA. The sluggish economy has affected the performance of the minor banks or Commercial Banks Group of Business Activities (BUKU) I and II.
According to the data from Financial Services (FSA), as of September 2016 the credit allocation of BUKU I dropped by 45.06% from Rp 118,00 trillion as of September 2015 to Rp 64.83 trillion on year on year (yoy) basis.
BUKU II banks were luckier by recording the credit allocation of Rp 567.38 trillion as per the end of the third quarter. This has slightly increased by 2.71% on annual basis.
The minor banks have a tighter liquidity. For an example, the loan to deposit (LDR) of BUKU II increased to the level of 92.49%. This has also driven the minor bankers to set conservative target by the end of the year.
President Director of PT Bank Ina Perdana Tbk said that the bank is pursuing a worth of Rp 130 billion additional credits in the fourth quarter. Bank Ina is targeting to increase the credits from Rp 1.43 trillion as of September 2016 to Rp 1.56 trillion by the end of 2016. As of September 2016, the credit allocation of Bank Ina only grew by 4.37%.
Similarly, Corporate Secretary of PT Bank Artos Indonesia Tbk Deddy Triyana said that Bank Artos is targeting a 5% increase in credit allocation amid the sluggish economy. As of September 2016, the credit allocation of Bank Artos dropped by 3.53% to Rp 465,40 billion.
Ambitious target
Due to the limited liquidity and credit demand in this year, the minor banks are ambitious in setting a double-digits growth target in 2017. Deddy said that Bank Artos is targeting the credit growth and third party funds at the levels of 23% and 20%, respectively in 2017.
President Director of PT Bank Woori Saudara 1906 Tbk Yanto M Purbo said that the bank is targeting a 16% credit growth. Meanwhile, Bank Sahabat Sampoerna is targeting a 15% credit growth along 2017. Slightly different, Bank Ina prefers to adopt conservative stance by targeting an 8% credit growth.
(Muhammad Farid/Translator)
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