September 2017, Consumption Credit Grew 9 Percent

Amid slowing domestic consumption, bank consumer credit recorded the highest growth compared to working capital and investment credit. Data from the Financial Services Authority (OJK) shows that consumer credit grew by 9.19 percent year-on-year (YoY) to Rp 1,297.97 trillion during January-September 2017. However, non-performing loans (NPLs) also increased by Rp 22.6 trillion (YoY).

Working capital credit in the first nine months of 2017 recorded growth of 8.35 percent, reaching Rp 2,130.83 trillion compared to the same period the previous year (YoY). Meanwhile, NPLs for working capital loans decreased by 5 percent to Rp 73.88 trillion.

Investment credit in the January-September 2017 period grew by only 5.21 percent to Rp 1,133.24 trillion (YoY). Its NPLs decreased by 2.77 percent to Rp 36.8 trillion (YoY). Total national commercial bank credit in the first nine months of 2017 grew by 7.78 percent to Rp 4,543.59 trillion, while its NPLs decreased by 1.69 percent to Rp 133.28 trillion.