Bank Mandiri sees 21% surge in lending in 2012

The bank believes it would be able to reach its target if Indonesia’s economic growth expands more than 6% next year.

Bank Mandiri, the country’s largest lender by assets, forecast lending to grow 21 percent next year, a company executive said on Friday.

Mandiri’s loan growth target would be slightly lower than the target made by Bank Indonesia last week. 

“If the economic growth expands at the minimum pace of 6 percent next year, we can achieve that loan growth target,’’ said Pahala Mansury, the bank’s chief financial officer, at a conference in Bali. Pahala did not provide details on Mandiri’s loan growth target for this year.

As concerns of a global economic slowdown heighten, Halim Alamsyah, a deputy governor at Bank Indonesia, said last week that lending growth by Indonesia’s 120 commercial banks would slow next year. 

Loan growth is forecast to reach 23 percent to 24 percent in 2012. That compares with a 24 percent to 25 percent growth rate for this year, as predicted by BI governor Darmin Nasution earlier this month. 

Pahala said loan demand by Indonesian consumers and businesses would remain strong next year as companies sought funding for expansion. 

View the full story in Jakarta Globe.