Despite Slowing Down, New Credit Disbursement Shows Positive Growth in Q1 2022

Bank Indonesia (BI) reported that new credit disbursement showed positive growth in the first quarter of 2022, although it slowed from the previous period.

This is reflected in the Weighted Net Balance (WNB) of new credit demand, which reached 64.8% in Q1 2022. This figure is lower than the 87.0% recorded in the previous quarter.

The slowdown in new credit growth occurred across all types of credit. The WNB for working capital credit grew by 65.3% in January-March 2022, lower than the 80% recorded in September-December 2021.

The WNB for investment credit was 31.3% in Q1 2022, lower than 68.1% in the previous quarter. Similarly, the WNB for consumption credit was 46.8%, lower than the 84.1% in the previous quarter.

Sectorally, the highest growth in new credit disbursement occurred in the wholesale and retail trade sector, with a WNB of 48.5%. This was followed by the agriculture, hunting, forestry, and accommodation & food service sectors, with WNBs of 39.5% and 36.7%, respectively.

BI projects an increase in new credit disbursement in Q2 2022. This is reflected in the projected WNB of new credit demand, which is expected to reach 79%.

(Also read: Bank's Non-Performing Loans Remain High Until Early 2022)