July 2017, Bank Lending Grew 8.2 Percent

Bank credit in July 2017 grew by 8.2 percent year-on-year (YoY), exceeding the previous month's growth of 7.75 percent (YoY). This growth was driven by increases in working capital and consumer credit. Investment credit growth, however, slowed to 6.39 percent (YoY) from 6.4 percent (YoY).

Data from the Indonesian Financial Services Authority (OJK)'s Indonesian Banking Statistics shows that credit value in July 2017 reached Rp 4,469.28 trillion, up from Rp 4,130.44 trillion in July of the previous year. However, compared to the previous month, outstanding bank credit decreased by 0.49 percent from Rp 4,491.18 trillion. This marks the third such decrease since the beginning of the year.

According to Bank Mandiri's Daily Economic and Market Review, the largest credit growth was experienced by the international organizations sector, reaching 230.64 percent in July 2017. This was followed by the government administration sector and the construction sector at 66.06 percent (YoY) and 24.22 percent (YoY), respectively. Meanwhile, Third Party Funds (DPK) grew by 9.76 percent (YoY) to Rp 5,032.7 trillion.