Fuel Price Cut Boosts Loan Distribution

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) is confident that bank loans will grow 16.46 percent according to the target set in the 2015 Bank's Business Plan (RBB).

The cut in subsidized gasoline (Premium) prices is expected to reduce pressure on the domestic financial market, as well as lower the ratio of nonperforming loans (NPL). That way, "banks will have more freedom to multiply their financing disbursement," said OJK board of commissioners' chairman, Muliaman D. Hadad, last week.

Robust bank loan disbursement is expected to encourage development in general. To help the government meet the Rp1,000 trillion annual infrastructure funding target, Coordinating Minister for the Economy Sofyan Djalil said his ministry will encourage banks to provide more investment funds, such as by reducing SOEs dividend payment from Rp44 trillion to Rp35 trillion.

To encourage loan disbursement, Bank Indonesia will release macroprudential policies related to the sector. BI executive director of communications Tirta Segara said that a number of lax rules will be applied to expand bank's fund sourcing options. 

TRI ARTINING PUTRI | ANDI RUSLI | ODELIA SINAGA