JAKARTA. Deregulations on credit are less effective to raise the demand on credit. Deputy Governor of BI (the Central Bank) Erwin Riyanto said that credit allocation is still slow. The newest data from BI show that as of August 2016, credit allocation only grew by 6% to IDR4,148 trillion compared to the same month in August 2015. In monthly basis, credit allocation growth in August 2016 is lower than the level of 7.72 % of growth in July 2015. According to Erwin, recently an export-oriented company prefers to avoid making new domestic and foreign debts. Therefore, this caused the allocation of foreign exchange credit became stagnant. “The businessmen prefer pay off the debt earlier than scheduled”, Erwin said. Meanwhile, Rupiah denominated credit grew by 9.8% during August 2016. BI predicted that the credit will grow in the range of 7%-9% by the end of 2016. It is predicted that non-performing loan or NPL rate tends to increase, but still moves at the level of below of 3%.
Credit still slow in August 2016
JAKARTA. Deregulations on credit are less effective to raise the demand on credit. Deputy Governor of BI (the Central Bank) Erwin Riyanto said that credit allocation is still slow. The newest data from BI show that as of August 2016, credit allocation only grew by 6% to IDR4,148 trillion compared to the same month in August 2015. In monthly basis, credit allocation growth in August 2016 is lower than the level of 7.72 % of growth in July 2015. According to Erwin, recently an export-oriented company prefers to avoid making new domestic and foreign debts. Therefore, this caused the allocation of foreign exchange credit became stagnant. “The businessmen prefer pay off the debt earlier than scheduled”, Erwin said. Meanwhile, Rupiah denominated credit grew by 9.8% during August 2016. BI predicted that the credit will grow in the range of 7%-9% by the end of 2016. It is predicted that non-performing loan or NPL rate tends to increase, but still moves at the level of below of 3%.