Jakarta: According to state official news Channel, Governor Agus Martowardojo has revised the credit growth production of banks between 10-12 and 12-14 percentages due to low demand of production.
Previously, it had been reported to the state government about the liquidity available in banks, the report stated by BI Governor Agus Martowardojo on Friday November 17th, 2017, “Credit grew 7.78 percent in September, slightly higher than the percentage of 7.78 (that was recorded I n June 2017), but total growth of Jan 1 to September 30 which was only 3.8 percent.”
Previously, it was reported to Governor by Konton.co.id, and later Governor brief Finance Minister during the meeting. He said, “Therefore, we see by the end of this year 2017, banks will try to achieve their business plans, but the realization will be up to 10-12 percent.”
“The demand of loans is lower than BI previous estimate because many co operations have just finished their consolidation,” he added, “They wanted to ensure their balances are healthy. Therefore, they have not proposed increasing credit. They will study the global economy first.”
He further stated that banks were consolidating to keep the quality of loan disbursement while BI supported the loan disbursement by keeping cyclical buffer up to 0 percent.
BI Deputy Governor Erwin Rayanto explained that the CCB macro-prudential instrument to control the credit disbursement.
Furthermore he stated that initial capital didn’t support the growth production of banks.
Reporter: Syeda Faiza Bukhari
