Bank Indonesia (BI), bankers and observers agree that credit can be positive this year

Reporter: Laurensius Marshall Sautlan Sitanggang | Editor: Yudho Winarto |

KONTAN.CO.ID – JAKARTA. The Banking Survey released by Bank Indonesia (BI) estimates that in the fourth quarter of 2020, on a quarterly basis, new credit is estimated to grow higher than the previous quarter. Although it will not be as high as the same period the previous year.

This is reflected in the weighted net balance (WNB) of the estimated new loan demand in the fourth quarter of 2020 at 57.6%. Higher than the previous quarter at 50.6%. However, it is still much lower when compared to the same period in the previous year at 70.6%.

“This growth estimate indicates that the trend of improvement in financing performance will continue in the fourth quarter of 2020, although it is relatively limited compared to the same period last year,” said Head of the Communication Department and BI Executive Director Onny Widjanarko in the Banking Survey released Friday (16/10).

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Reflecting on this growth, the central bank estimates that credit at the end of this year can still grow by 2.5%. Although it is still lower than the 2019 credit realization of 6.1%.

The projection is quite positive, because several months earlier it was predicted that credit could only grow stagnant, aka 0% to a maximum of 2%, according to the regulator.

BI also underlined that in the fourth quarter, demand for credit will be dominated by working capital credit (KMK), followed by investment credit and consumption credit.

Responding to the survey, the banking industry also agreed that the stretch in credit in the fourth quarter had begun to show. It’s just that, the pace is not too heavy, because there are still a few borrowers who apply for credit.

In addition, banks are certainly very selective in extending credit because the risks are still considered high.