Banking Credit Grows Up to IDR 6,314.4 Trillion

Saving money in bank

Banking credit grows 11.7 percent on an annual basis (year-on-year/yoy). This was influenced by bank lending which reached IDR 6,314.4 trillion as of October 2022.

Bank Indonesia (BI) reported that bank credit growth in October 2022 was higher than the previous month which grew 10.89 percent YoY.

The increase in banking credit occurred both to corporate customers by 14.09 percent YoY to IDR 3,258.8 trillion, as well as individuals which grew 10.49 percent YoY to IDR 3,007.5 trillion.

“Credit growth in October 2022 was mainly experienced by investment loans which reached 14.2 percent YoY,” he was quoted as saying in BI’s October 2022 Money Supply Development Analysis report, Wednesday (23/11/2022).

Furthermore, investment loans as of October 2022 reached IDR 1,642.3 trillion. Investment credit growth increased rapidly compared to the previous month at 10.29 percent YoY.

In this investment credit, the mining and quarrying sector grew 99.79 percent YoY mainly sourced from credit in the oil and gas mining sub-sector in Riau and West Kalimantan.

The manufacturing industry sector also grew by 22.69 percent YoY in line with credit development in the iron and steel base metal industry sub-sector in Banten.

Then, working capital credit grew steadily at 12.26 percent YoY to IDR 2,876.8 trillion. Then, consumer credit grew 8.7 percent as of October 2022 to IDR 1,795.3 trillion as of October 2022.

This consumption credit is driven by developments in motor vehicle loans (KKB) and multipurpose loans.

Meanwhile, banking mortgages and apartment ownership loans (KPA) as a whole as of October 2022 have grown 7.8 percent YoY to IDR 606.3 trillion. KPR and KPA have contributed 50.6 percent to property loans from banks as of October 2022, which reached IDR 1,197.6 trillion.

Previously, BI Governor Perry Warjiyo estimated that bank credit could still grow in the range of 9.5 to 11.5 percent, amidst high global turmoil and uncertainty in 2023.

Perry said, considering current and next year’s economic conditions, BI’s policy mix would still be directed at maintaining economic stability and growth.