Bankers: Credit may grow by double digit

JAKARTA. The bankers predict that the credit may grow by more than 11% in the quarter I-2017. Previously, the OJK (the Financial Service Agency or FSA) has predicted that the credit would likely grow by the range of 8.5% in the first three months of 2017.

The Financial Director of PT Bank Rakyat Indonesia Tbk (BRI) Haru Koesmahargyo said, the bank is optimistic that the credit allocation may grow by 14% in the first three months of this year. “The credit growth may be driven by the segments of micro and small enterprises,” Haru told KONTAN, Monday (27/2).

Another state owned bank, PT Bank Tabungan Negara Tbk (BTN) is also optimistic to book significant growth in credit allocation. The Financial and Treasury Director of BTN Nugroho Soeko claimed that BTN was able to record a 20% credit growth in the first quarter of 2017. The growth was mostly supported by the housing mortgage loans, especially in the segment of subsidized housing mortgage loans.

Likewise, President Director of PT Bank Bukopin Tbk Glen Glenardi said, the bank predicts to book a credit growth of 11%-12% in the first quarter of 2017 that mostly would be driven by the retail credit. “As of the early of 2017, the credit has grown by 11% ," Glen said.

Slightly different, the President Director of PT Bank Pan Indonesia Tbk (Panin) Herwidayatmo said, the credit allocation would remain slow in the first quarter. “The credit is unlikely to grow as high as the OJK’s prediction,” Herwidayatmo said.

In 2016, Bank Panin only recorded a 6% credit growth on year on year basis. The bank is actively to pursue the credit growth at the level of 10%-15% in 2017.
OJK has a moderate prediction

However, the member of Board of Commissioners of OJK Nelson Tampubolon said, the banks would likely to struggle to allocate the credits, since the slow economic growth still hampers the demands for credit, as well as might trigger the increase in credit risks. “Probably, the credit will grow by more than 8.5% in the first quarter of 2017,” Nelson said.

As information, the credit grew by 8.51% in the first quarter of 2016. This is not much different with the prediction of credit growth in 2017. The credit grew slower in 2016 compared with the credit growth in the first quarter of 2015 as much as 11.36%.

Previously, BI (the Central Bank) predicted that the credit will grow by 10% in the first quarter of 2017. Meanwhile, the Deposits Insurance Agency (LPS) predicted that credit might grow by 8%-9% during the same period.

The credit allocation has been under the pressure of the slow economic growth. Therefore, the bankers have preferred to invest in the securities, rather than in credits. As of 2016, the banks’ investments in securities have increased by 30.22% to Rp 860.52 trillion. (Muhammad Farid/Translator)