New Credit Disbursement Shows Positive Growth in Q3 2021

Bank Indonesia (BI) recorded a positive growth indication in new credit disbursement in the third quarter of 2021. This is reflected in the Weighted Net Balance (WNB) of new credit demand, which reached 20.9% in Q3 2021.

However, the Q3 2021 WNB of new credit demand was lower than the previous quarter. In Q2 2021, the WNB of new credit demand was recorded at 53.9%.

New credit growth occurred across all types. The WNB of investment credit grew by 34.4% in July-September 2021, higher than the 13.3% in April-June 2021.

The WNB of consumption credit was recorded at 49.8% in Q3 2021, higher than the previous quarter's 31.3%. Meanwhile, the WNB of working capital credit was 18.1%, lower than Q2 2021's 45%.

Sectorally, the highest new credit disbursement was in the construction sector with a WNB of 55.8%. The WNB for the agriculture, hunting, and forestry sector was recorded at 55.7%. Meanwhile, the WNB for the manufacturing industry sector was 48.9%.

The central bank expects new credit disbursement to increase in Q4 2021. This is reflected in the projected WNB of new credit demand, which reached 90.9%.

Cumulatively, BI's survey results indicate that respondents remain optimistic about credit growth. Respondents projected credit growth of 5.3% (yoy) in 2021.

This optimism is driven by improving monetary and economic conditions. Furthermore, credit disbursement risks remain relatively contained this year.