Indonesia: OJK Predicts Bank Loan to Grow 12 Percent in 2018

• Jan 20, 2018

TEMPO.CO, Jakarta – Financial Services Authority (OJK) chairman Wimboh Santoso said the growth of bank loan during 2017 was quite well. The loans grew 8 percent from the target set at 10 to 12 percent.

However, Wimboh claimed that he was not satisfied with the achievement. “It should be higher in the future,” he said in Jakarta, on Thursday, January 18.

He is optimistic that this year’s credit will grow to 10 to 12 percent. According to Wimboh, last year’s loan was affected by bank restructuring.

He said OJK will encourage credit growth through people’s business credit (KUR) for micro, small and medium enterprises (UMKM). Wimboh said KUR needs to be encouraged to create cluster projections to provide more equitable financial services to the people.

President Joko Widodo previously asked the bank to not only focus on collecting the third party fund (DPK). “Do not let bank only collect the DPK while reluctant in approving the loan, especially for micro, small and medium entrepreneurs,” said Jokowi.

The president views the current condition of the Indonesian financial industry is good and is considered to able to support the economic growth. One of them is through an equal financial access to reduce poverty and inequality.

Source: https://en.tempo.co/read/news/2018/01/20/056915014/OJK-Predicts-Bank-Loan-to-Grow-12-Percent-in-2018