JAKARTA. In 2017, bankers target to speed up credit allocation to construction sector, amid the increase government expenditure in the segment. Under the scheme of 2017 State Budget Plan (RAPBN), government expenditure in construction sector has increased by 16.7% to Rp 346.6 trillion.
Construction credit has grown significantly in 2016. As of July 2016, construction credit grew by 10.87% to Rp 191.73 trillion on year to date basis, while the total credit only slightly grew by 1.68% to Rp 4,161.19 trillion during the same period. In other words, construction credit booked a ten times growth compared to the total bank credit.
Data from Bank Indonesia (the Central Bank) show that the major banks still control the biggest market share on construction credit. As of July 2016, General Banks of Enterprise Activity III (BUKU III) allocated Rp 75.09 trillion of construction credit, while the General Banks of Enterprise Activity IV (BUKU IV) allocated Rp 66.23 trillion of construction credit.
Head of Business Syndication Unit at Bank Negara Indonesia (BNI) Dedi Priambodo said that government’s bridging loan program may speed up credit allocation to infrastructure sector in 2017.
Dedi added that BNI is targeting to launch syndicated bridging loans to fund several toll roads construction in the fourth quarter of 2016.
Meanwhile, PT Bank Tabungan Negara Tbk (BTN) is optimistic to book a higher credit allocation in construction sector. Director of commercial Lending at BTN Oni Febriarto Rahardjo said that the government’s One Million Housings program may jack up construction credit of BTN in 2017.
“Demand for construction credit, mainly for the segment of under IDR300 million of house is still high”, said Oni.
Despite of the high expectations on the construction credit growth in 2017, non- performing loan (NPL) rate of construction credit reflected negative prospects during this year. As of July 2016, NPL rate of construction credit stood at 4.7%, while construction credit of BUKU III contributed to 6.01% of the rate.
Financial Director of PT Bank Rakyat Indonesia (BRI) Haru Koesmahargyo said that BRI will conduct early recovery to control NPL growth.
Editor: Dupla KS
Editor: Dupla KS