TEMPO.CO, Jakarta - Bank Indonesia (BI) predicts that Indonesia will see a better loan growth next year. BI’s Senior Deputy Governor Mirza Adityaswara said that loan growth could reach 10 to 12 percent.
According to Mirza, better loan growth forecast is based on improved economic growth in 2017. “We foresee better economic growth in Java and Sumatra as commodity prices increase,” he said at the Bank Indonesia Complex, Thamrin, Jakarta, Monday, October 24, 2016.
Mirza said that demand for loans will come from people and businesses to meet their consumptions, as well as export and import financing. Economic growth in 2017 is expected to keep its upward trend, ranging from 5.1 to 5.5 percent.
However, the slowdown in loan growth is expected to continue until year-end. The Financial Service Authority (OJK) president commissioner Muliaman Hadad has revised loan growth target this year to 6-8 percent.
Muliaman said the OJK will continue to monitor loan growth because an increase often occurs at the end of the year. Bank Indonesia has lowered its 7-day repo rate to 4.74 percent.
Despite such revisions, Muliaman said that loan growth remains relatively robust. Lower demand for loans is not exclusive to Indonesia but also hit other parts of the world due to global economic slowdown. “I believe it is a current economic trend,” he said on Friday, October 21.
GHOIDA RAHMAH