September 2017, Foreign Bank Loans Decreased by 19 Percent

The domestic economic slowdown, impacting the sluggishness of the business world, has affected national bank credit. Based on data from the Indonesian Financial Services Authority (OJK)'s Indonesian Banking Statistics, the disbursement of credit by general banks in September 2017 only grew by 7.86 percent to Rp 4,543.59 trillion compared to September 2016 (YoY). Meanwhile, Third Party Funds (DPK) still grew by 11.69 percent to Rp 5,142.89 trillion compared to the previous year (YoY).

According to their business activities, foreign banks were the most affected by the domestic economic slowdown. In 2017, credit disbursement by foreign banks fell the most sharply, reaching 19.16 percent to Rp 197.65 trillion compared to September of the previous year (YoY). This was followed by Non-Foreign Domestic Private Banks (BUSN) which also experienced a decrease of 5.46 percent to Rp 56.57 trillion from the previous year (YoY). Meanwhile, mixed banks only recorded growth of 1.82 percent to Rp 218.31 trillion (YoY).

For Regional Development Banks (BPD), up to September 2017, growth reached 7.34 percent to Rp 381 trillion from the previous year (YoY), but this achievement is still below national credit growth. Meanwhile, Foreign Domestic Private Banks (BUSN) recorded credit growth of 9.98 percent to Rp 1,841.08 trillion from the previous year and is above national credit growth. Similarly, state-owned banks also recorded growth of 11.07 percent to Rp 1,848.98 trillion.