Indonesia’s economy is showing its passion after the pandemic subsides. This is evidenced by the latest data from Bank Indonesia related to bank credit. Banking credit has shown positive growth supported by increases in working capital and consumption credits.
The money supply analysis report released by Bank Indonesia (BI) on Wednesday (24/8/2022) stated that banking credit in July reached Rp6,143.7 trillion. This number increased by 10.5 percent year-on-year (YoY).
The proceeds were channeled to loans to individuals amounting to Rp2,928.7 trillion, an increase of 10 percent YoY. Meanwhile, loans to corporations grew 12.1 percent to Rp3,168.2 trillion.
“Based on the type of use, growth in lending in July 2022 will occur in working capital and consumer loans,” the BI report said as quoted on Thursday (25/8/2022).
The central bank noted that the distribution of working capital loans as of July reached IDR 2,812.4 trillion, growing 12.9 percent YoY. This increase was supported by credit to the manufacturing sector of Rp. 732.1 trillion and to agriculture, animal husbandry, forestry, and fisheries of Rp. 228.2 trillion. These sectors grew by 16 percent and 23.8 percent respectively.
Meanwhile, consumer credit increased 7.6 percent YoY to Rp 1,747.2 trillion. The disbursement went to Home Ownership Loans (KPR) of Rp. 607.8 trillion, Motor Vehicle Loans (KKB) of Rp. 109.6 trillion, and multipurpose loans of Rp. 1,029.8 trillion.
All of these sectors recorded an increase. Mortgages posted growth of 7 percent YoY, KKB rose 11 percent YoY and multipurpose loans 7.6 percent YoY.
Meanwhile, a different situation is shown by the performance of investment credit. Even though it still grew 9.5 percent YoY or Rp. 1,584,1 trillion, this achievement has decreased compared to June 2022 which recorded an increase of 10.3 percent.
The decrease in credit monthly was contributed by the agriculture, livestock, forestry, and fisheries sectors, which in July 2022 rose 3.2 percent YoY, while the previous month recorded a growth of 4.4 percent YoY or Rp 247.5 trillion.