Removing Obstruction in Real Sector
In February 2018, the average bank lending rate remained 11.27 percent. In fact, the interest rates for the one-month and three-month time deposits dropped respectively to 5.65 percent and 5.97 percent.
Tellers serve customers at the headquarters of Bank Negara Indonesia (BNI) in Jakarta on Monday (19/3). Bank Indonesia (BI) said credit disbursement in February grew 8 percent year on year compared to January, which stood at 7.4 percent, and it showed surging credit in the corporate sector.
Bank loans remained relatively low in 2017, growing only 8.24 percent in a year. In January 2018, total loans grew only 7.4 percent year-on-year, while in February, total loans grew 8.22 percent year-on-year.
Lending growth, which always reached double digits before 2014, was below Bank Indonesia’s target. In January 2018, undisbursed loans accounted for 32 percent of total loans, or approximately Rp 1.467 quadrillion, up 5.39 percent year-on- year.