Monday, 10 June 2019 00:00

Bank credit remains growing amid the global economic slowdown

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Amid the change in global economic growth projections by international institutions, Indonesia's Financial Services Authority (OJK) is still optimistic that domestic growth will remain positive. According to Chairman of the Board of Commissioners of the Financial Services Authority (OJK), Wimboh Santoso, the dynamics that have occurred in the global economy have little direct effect on Indonesia. At present, the demand for goods and services for domestic consumption still dominates Indonesia's economic growth.Credit growth rates reflect the transmission of the domestic economy, especially domestic consumption. The high credit growth indicates that the business expansion climate in Indonesia is still passionate. Indonesia certainly cannot rely too heavily on investment; exports to a number of countries must also be maintained. Amid the heated trade war between China and the United States, Indonesia must continue to look for new markets for export purposes as a component of economic growth.Based on the latest data from Bank Indonesia, as of March 2019, the average bank credit growth reached 11.5 percent. This decreases compared to February 2019 which reached 12.1 percent. Even so, Bank Indonesia predicts that bank credit growth in 2019 will still be in the range of 10-12 percent.What does BI need to do to maintain and simultaneously encourage growth?The Financial Services Authority certainly needs to support various government policies that provide incentives to improve the competitiveness of Indonesian products in the global market. It is hoped that, in the future, Indonesia's exports will no longer be too dependent on China, which is currently involved in the trade war against the United States.

Read 328 times Last modified on Tuesday, 11 June 2019 08:45