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Indonesia’s new loans rise in Q2
New loan disbursements are expected to further grow in Q3.
New loan disbursements in Indonesia rose to a weighted net balance (WNB) of 89.1% in Q2, according to data from the Bank Indonesia (BI).
This is nearly 29 basis points (bp) higher than the 60.8% WNB recorded in Q1.
Faster growth was reported across all loan types, except consumer loans.
BI expects new loans disbursements to accelerate further in Q3 (July-September 2024), with WNB expected to increase to 93.6%.
Whilst growth rose, respondents to BI’s latest banking survey reported slightly tighter lending stars for Q3, as indicated by a positive lending standards index (LSI) of 2.6%, primarily in terms of administration fees.
In contrast, interest rates will remain looser, the central bank said.
Respondents were noted to be “optimistic” on credit growth until end-2024, the central bank’s survey found.
“Respondents are upbeat, amongst others, due to the monetary and economic outlook as well as relatively mitigated credit risk when disbursing loans,” BI stated in a press release posted on its website.