BI: Credit Growth Slows

Indobusiness - Bank Indonesia (BI) said bank lending growth slowed until the end of May 2013 to 21 per cent. The weakening of credit growth was triggered because the Indonesian economy is also slowing.

BI Governor Agus Martowardojo explain the weakening of credit growth is also not free from the influence of global sentiment remains uncertain. So this is an impact to the domestic economy.

"In line with economic growth likely to slow down, credit growth slowed until the end of May 2013 to 21 percent (yoy)," Agus said during a press conference at the Bank Building in Jakarta, Thursday (11/07/2013).

He added that credit growth is contributed from the three sectors of banking credit.

For working capital and investment loans, although decreased but was still able to grow quite tall, respectively by 21.7 per cent (yoy) and 22.9 percent (yoy). Meanwhile, consumer credit growth fell to 18.4 per cent (yoy).

"We look at the development of credit (mortgage) or apartment mortgage (NAC) on certain types grow too high," he added.

To that end, BI alarming high credit performance can affect the performance of the banking and financial system stability.

In terms of capital adequacy ratio (capital adequacy ratio / CAR), the central bank noted the ratio is still 18.4 percent and were well above the minimum requirement of 8 per cent and ratio of non-performing loans (non-performing loans / NPL) are still low gross of 1.95 percent in May 2013.

BI also have corrected Indonesia's economic growth in 2013 by 5.8 to 6.2 percent. Initially, Bank Indonesia predicts growth of 6.2 to 6.6 percent.

"In 2014 alone, Indonesia's economic growth will reach 6.4 to 6.8 percent," he added.