Rabu 19 Mar 2014 20:07 WIB

ICRA: Bank credit to grow 17-19 percent this year

Rep: Muhammad Iqbal/Mutia Ramadhani/ Red: Yeyen Rostiyani
A man uses an Automatic Teller Machine (ATM) at ATM corner in a shopping center. (Illustration)
Foto: Republika/Prayogi
A man uses an Automatic Teller Machine (ATM) at ATM corner in a shopping center. (Illustration)

REPUBLIKA.CO.ID, JAKARTA – PT ICRA Indonesia, a rating agency for corporate, banking and non-banking financial institution predicted that bank credit growth in Indonesia to reach 17-19 percent this year. The figure is higher than projection of Bank Indonesia (BI) in range of 15.3-16.6 percent.

Assistant Vice President Analyst of Financial Institution Ratings PT ICRA Indonesia Kreshna Armand explained that the projection was based on several economic points, both domestic and global factors.

From domestic factor, BI’s level of interest rate was still a big challenge in maintaining credit growth. BI has increased its benchmark rate 175 basis points (bsp) since June 2013, from 5.75 percent to 7.50 percent in February 2014. General election this year, both legislative election on April 9 and presidential election on July 9 is expected to influence companies' business plan.

“Companies will withold their initial public offering or IPO's plan and also their capital expenditures to 2015,” Armand said on Wednesday.

From global factor, new policy on monetary stimulus by the Federal Reserve can trigger the credit growth. Many banks have adjusted their business plans with the Fed policy. 

 

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