REPUBLIKA.CO.ID, JAKARTA -- Indonesia is expected to have its slowest loan growth since 2010 this year due tight liquidity at banks, a central bank senior official told Reuters on Friday.

Juda Agung, the executive director of Bank Indonesia's economic and monetary policy department, estimated 2014 loan growth at 11-12 percent, or just over half of last year's pace of 21.4 percent.

Earlier, monetary authorities believed that this year's loan growth would be close to 15 percent. Agung said loan growth should pick up next year to 15-17 percent because of better economic conditions.

In September, bank loans were 13.2 percent higher than a year earlier, according to data from Financial Services Authority. Agung also forecast that Indonesia's full-year current account deficit will narrow to 2.9 percent of gross domestic product (GDP) from 3.3 percent of GDP in 2013.

The fourth quarter's current account gap is predicted to be 2.3 percent of GDP, Agung added, compared with 3.07 percent in the third quarter.

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