TEMPO.CO, Jakarta - The Deputy Governor of Bank Indonesia Erwin Rijanto has noted an increasing loan disbursement trend. As of May, the central bank reports 9.8 percent loan growth. The figure is higher compared to April at 9.7 percent. “It’s reaching 10 percent and is expected to meet the target,” Erwin said in his office yesterday.
Erwin said that the figure is better compared to that of May 2016 of 8 percent. According to him, corporation sector is improving and infrastructure development has triggered the increase in loan disbursement.
Erwin said that loan growth target of 12 percent is achievable. The reason: ratings agency Standard & Poor’s has upgraded Indonesia sovereign credit rating to investment grade. The central bank, however, is still wary of and should keep FX volatility low.
Following the positive trend, state-owned lender Bank Mandiri CEO Kartika Wirjoatmodjo said that the bank will not increase interest rate in the near future. Instead, the company will increase its term deposit interest rate. “Deposit [interest rate] should begin to increase because a stricter liquidity has been imposed and loan growth is within the range of 10 percent.”
The Governor of Bank Indonesia Agus Martowardojo said that throughout this year interest rate has dropped by 93 basis points. However, a contradiction occurred in April due to an increase in interest rate by 2 basis points. On the other hand, term deposit interest rate continues to decrease.
The Financial Services Authority (OJK) president commissioner Muliaman Hadad said that the target of 12 percent loan growth cannot be achieved through the contribution of bank sector only. According to him, the capital market, insurance and other financial services ought to exploit the momentum as well.
Andi Ibnu | Angelina Anjar Sawitri | Putri Adityowati
