TEMPO.CO, Jakarta - The Financial Services Authority (OJK) recorded credit growth of 9.2 percent in March 2017 increasing from 8.7 percent in the same month of last year.
“Credit has started to grow since early 2017. Last year, credit growth was seen in mid-year,” OJK chairman Muliaman D. Hadad said at the Finance Ministry in Jakarta on Thursday, April 27, 2017.
Muliaman explained that the credit growth resulted from various business activities and banking intermediations. The condition indicates that the national financial system is in a stable state.
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According to Muliaman, bank liquidity has been improving after the tax amnesty program ended in March.
“We’re still optimistic that the credit growth with a target ranging from 9 percent to 12 percent can be attained,” he added.
OJK also recorded that non-performing loans (NPL) in March 2017 decreased to 3.04 percent from 3.16 percent in February. Muliaman explained that the condition was a result of restructuring and write-off conducted by banks last year since the loan loss provision (CKPN) owned by banks was sufficient.
Bank Indonesia Governor Agus Martowardojo said that bank liquidity in early 2017 was solid in general, as third party funds were maintained at 10.04 percent in January 2017, which was increasing from 9.6 percent in December 2016.
“The increasing trend of liquidity still continues,” he said.
Agus added that the credit growth has been better than last year. He reminded banks to remain careful since non-performing loans are still at the level of 3 percent.
GHOIDA RAHMAH
