{
    "success": true,
    "data": {
        "id": 1698968,
        "msgid": "core-optimistic-about-double-digit-credit-growth-but-real-sector-credit-slows-1777045940",
        "date": "2026-04-24 19:01:19",
        "title": "CORE optimistic about double-digit credit growth but real sector credit slows",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Finance",
        "summary": "Etika Karyani Suwondo from the Center of Reform on Economics (CORE) believes that credit growth in Indonesia could still reach double digits this year, aligning with Bank Indonesia's target of 8-12%, primarily driven by the disbursement of previously approved loans rather than new expansions. While banking credit grew by 9.49% year-on-year in March 2026, supported by investment, working capital, and consumer loans, this growth is attributed more to the BI-Rate cut of 150 basis points since September 2024 and liquidity influx than genuine real sector demand. Concerns are rising over potential slowdowns due to global uncertainties like the ongoing US-Israel-Iran conflict, weakening rupiah exchange rate, capital outflows, and risks of rising non-performing loans in energy and logistics sectors.",
        "content": "<p>Jakarta (ANTARA) - Director of Research in Finance and Digital\nEconomy at the Center of Reform on Economics (CORE), Etika Karyani\nSuwondo, stated that credit growth could still achieve double digits\nthis year, despite the potential slowdown in demand from the real\nsector. She noted that such growth is likely to be driven by the\ndisbursement of credit from previously approved applications. \u201cDouble\ndigits are still possible, BI (Bank Indonesia) targets 8\u201312 percent. But\nit might be higher because it relies on the disbursement of already\napproved credit, not new expansions,\u201d said Etika Karyani Suwondo when\ncontacted by ANTARA in Jakarta on Friday. BI revealed that banking\ncredit grew by 9.49 percent year-on-year (yoy) in March 2026, higher\nthan the 9.37 percent yoy in February 2026. Based on usage groups, this\nincrease was supported by investment credit, working capital credit, and\nconsumer credit, which grew by 20.85 percent yoy, 4.38 percent yoy, and\n5.88 percent yoy respectively in March 2026. Etika assessed that this\nbanking credit growth is mainly not driven by real demand, but due to\nthe decline in the BI reference rate (BI-Rate) by 150 basis points (bps)\nsince September 2024, accompanied by a flood of liquidity. She explained\nthat this reflects a transmission mechanism that is still obstructed\nbetween central bank policy adjustments and their impact on the real\nsector. She is also concerned that this condition will further slow\ncredit demand in the real sector, especially if the global economy\nbecomes increasingly uncertain due to the ongoing US-Israel-Iran War.\nEtika said that the current conflict in the Middle East has not yet had\nmuch direct impact on domestic banking credit distribution. However, she\nurged all parties to be vigilant and mitigate as early as possible\nagainst various emerging risk indicators. Some of those risk indicators,\nshe continued, include the weakening rupiah exchange rate touching\nRp17,304 per US dollar on Thursday afternoon (23\/4) and capital outflows\nreaching 1.7 billion US dollars in January-March 2026. \u201cOJK has also\nwarned of potential NPL (Non-Performing Loan\/bad loans) in the energy\nand logistics sectors. If the war prolongs, the impact will enter\nthrough rising energy prices and pressure on purchasing power,\u201d said\nEtika.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/core-optimistic-about-double-digit-credit-growth-but-real-sector-credit-slows-1777045940",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}