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Indonesia's loan growth rises in Q1

Staff Writer |
The Annual banking credit in Indonesia had grown at a faster pace in the first quarter, indicating that the country's economy growth had accelerated, the Financial Services Authority (OJK) said.

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The loan expanded 9.2 percent from January to March on the yearly basis, compared with 8.7 percent at the same period last year, head of OJK Muliaman Hadad said.

The banking credit has risen since the beginning of this year, he said.

Non-performing loan trimmed to 3.04 percent in March from 3.6 percent in February, said Muliaman.

Meanwhile, Coordinating Minister for Economic Darmin Nasution said Thursday that he was upbeat over the 5.1 percent economic expansion at the first three months of this year as shipment of the country's products overseas and investment picked up amid rising global oil prices.

Indonesia expects 9 to 12 percent loan growth this year, compared with 7.87 percent last year, to help support the 5.1 percent economic growth target.

The central bank has applied the longest loosening-policy cycle from January to October of last year in a bid to help support loan growth.

The lender has also refrained from raising its benchmark rate despite of global uncertainty and has kept rupiah stable against the U.S. dollar.

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