OJK is optimistic that the bank credit distribution target can be achieved by 2024

TEMPO.CO, Jakarta – Chief Executive of Banking Supervision at the Financial Services Authority (OJK) Dian Ediana Rae is optimistic that the 2024 credit distribution target can be achieved through lending to micro, small and medium enterprises or MSMEs.

“We believe that the credit growth target set by the OJK at the beginning of the year is between 9 and 11 percent, which is still in line with the projections and objectives of the business plan submitted by the bank and in line with the banking intermediation function that has gone well so far,” Dian said in a webinar entitled Credit Growth Amid Global Threats, Tuesday, June 25, 2024.

Dian added that the banking sector's performance will still remain resilient and stable from April 2024, supported by the increasing performance of banking intermediaries. In April 2024, credit will increase by IDR 66.05 trillion or 0.91 percent month to month. “In terms of annual credit performance double digits gross amounting to 13.09 percent year on year up to IDR 7310.7 trillion,” he said.

He said banks are still generally optimistic about the 2024 credit distribution projection, which is in line with achieving and realizing credit growth in April 2024 and with the trend non-performing loans (NPL), which will decrease until the end of the year.

The expected credit growth, Dian said, is estimated to be achievable, as shown unpaid loans which increased by 10.60 percent compared to the previous year, which means that the banks have allocated future credit distribution plans.

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