Credits disbursed by the banking sector rose to an estimated Rp20 trillion ($2.2 billion) in August from Rp11.4 trillion in the previous month, Bank Indonesia spokesman Budi Mulya said, according to Asia Pulse.
The strong growth provided greater optimism that the credit growth target of 22% this year would be achieved, Mulya said.
Investment credits accounted for the largest portion of 12.3% followed by consumption credit at 11.6% and working capital credit at 8.4%. By the end of July, outstanding credit totaled Rp915.6 trillion.
Mulya said that despite the enthusiasm reflected by the credit expansion, the amount of undisbursed loans remained unchanged at Rp170 trillion.