JAKARTA (Yosefardi) – The central bank (Bank Indonesia/BI) reported Wednesday (August 31) that the banking lending only grew by 7.7% in July (year on year), slower compared to 8.2% growth in June 2016.
BI targets 7-9% lending growth for this year while the Financial Services Authority (OJK) is remain optimistic with 10-12% lending growth.
The outstanding lending per July 2016 reached Rp4,168.4 trillion. Credit for working capital and investment only grew by 5.8% and 10.9%, lower than 6.8% and 12.1% growth in June 2016.
BI also expects the lending rate to decline to single digit in December 2016, supported by the controlled inflation and BI rate cut.