Sunday, 09 May 2021 | 14:41 WIB

OJK: Banking Industry Eyes Lending Growth of 7.13 Percent This Year

OJK: Banking Industry Eyes Lending Growth of 7.13 Percent This Year (wikimedia)

JAKARTA, NETRALNEWS.COM - The Indonesian Financial Services Authority (OJK) says the banking industry targets lending growth to reach 7.13 percent in 2021, based on bank business plans. OJK has asked the banking industry to accelerate lending in the first quarter of this year.

Wimboh Santoso, Chairperson of the OJK Board of Commissioners, said the trend of credit growth began to improve in the fourth quarter of 2020. "Credit growth at the bank business plans was 7.13 percent. We gave directions to 7.5 percent plus minus one percent. That is our common reference," Wimboh on Thursday (02/18/2021).

OJK and the Indonesian government will continue to review what other policies can be conducted. Moreover, the recovery of the micro, small, and medium enterprises (MSME) sector is in line with the government's efforts to provide stimulus policy in the form of interest subsidies and credit guarantees for MSMEs.

In addition to credit restructuring policy that has been extended, OJK will also adjust policies in the motor vehicle and property sectors. This policy is expected to boost public demand so that the manufacturing industry can recover and demand for loans rises again.

Wimboh also said the financial services authority will consider several things that are of concern to banks, such as providing marketplace platform, letters of credit (L/C) usage, and various incentives to stimulate the property sector. This includes increasing the role of private banks in the government's National Economic Recovery program, and communication related to the relaxation of several provisions and the possibility of tax relief in the interim period.

"We encourage the consumption sector to increase public demand so that the manufacturing industry can rise while waiting for public activities to return to normal," he added.