TEMPO.CO, Jakarta - The Financial Service Authority (OJK) expects bank loans to grow 10 percent this year, which is lower than the target set in the 2017 Bank Business Plan (RBB) at 11.8 percent after being revised from 13 percent.
OJK Banking Monitoring Chief Executive Heru Kristiyana said that a 9-10 percent loan growth would be quite an achievement. He reasoned that as of October, loan growth stands at only 7.86 percent on a year on year basis and up 3-4 percent year to date.
“The growth remains slow since banks are consolidating,” he said today.
Read: Bank Indonesia: Credit Grows 7.8 Percent in June
Heru noted that bank loan growth is slowing down since major debtors are paying off their debts, including state-owned companies PT Pertamina and PT PLN.
As for next year, the OJK is confident that bank loan will grow above 11 percent because the consolidation period will end and show its results.
Heru said that the agency will be pushing banks to restructure in a bid to grow faster. He said that the OJK plays a key role in creating banking stability through a stricter monitoring.
VINDRY FLORENTIN
