JAKARTA. The credit allocation shows improvement ahead of the end of the year. At the last quarter of 2016, most of the credits were absorbed by infrastructure and consumption sectors.
According to Indonesia’s Banking Statistics (SPI), the undisbursement loan rate has decreased from 9.53% in October 2015 to 6.5% in October 2016. As of October 2016, the undisbursement loan amounted to Rp 1,310 trillion.
Head of Economic Risk and Financial System Group at Deposit Insurance Agency (LPS) Dody Arifianto said that credit absorptions in infrastructure and consumption sectors have supported the banking credits, which grow by 8%-9% in this year. The government is currently accelerating the constructions of infrastructure projects in some regions.
These projects involve subcontractors from private sector. In this case, banking sector is likely to allocate credits to some subcontractors ahead of the end of 2016.
Meanwhile, the disbursements of consumption credits were encouraged by the relaxation on loan to value (LTV) of property credit by BI (the Central Bank) in August 2016.
President Director of Bank Panin Herwidayatmo said that the amount of undisbursement loans in this year remain high. The customers of all sectors have delayed the credit disbursements due to the sluggish businesses.
Herwidayatmo expects that the better economic growth in the next year will improve the credits absorptions. Bank Panin predicts that the credit will grow by 5.9% to Rp 122.1 trillion by the end of 2016.
Treasury and Financial Director of Bank Mandiri Pahala Nugraha Mansury said that the credit growth of Bank Mandiri at the end of this year will be mainly driven by the improvements on commodities prices and the mortgage growth. “We are targeting to secure a 10% credit growth by this year,” he said.
As of October 2016, the credit allocation of Bank Mandiri grew by 12.09% to Rp 560.9 trillion, while the undisbursement loan of the bank increased by 13.78% to Rp 116.6 trillion.
Dody added, the prediction of 5% economic growth in the next year will accelerate the credit allocations. Credit allocations will also be driven by the increases in the prices of some commodities, such as coal, metal, crude palm oil (CPO), and rubber.
Doddy estimates that the credit allocations in the sectors of plantation, coal, wholesale, and manufacture will generate the credit growth at the level of 9% in 2017. (Muhammad Farid/Translator)
