Bank Indonesia Bridges Credit Demand-Supply Gap through PINISI Programme

Jakarta (ANTARA) - Bank Indonesia (BI) is bridging the gap between demand and supply of credit through the National Intermediation Acceleration Programme (PINISI) to optimise banking intermediation and drive economic growth. “Through PINISI, we are striving to connect the demand side from corporations/consumers who need credit with the supply side from banks that have excess credit or excess funding ceilings to allocate,” said BI Senior Deputy Governor Destry Damayanti in Jakarta on Monday. Destry noted that the current domestic financial cycle is still below macroeconomic movements. This condition indicates that there is still wide room for credit expansion without triggering inflationary pressures due to adequate economic capacity. PINISI itself is part of Indonesia’s central bank’s macroprudential policy to encourage economic growth through the optimisation of banking intermediation. Destry added that PINISI also includes strengthening monitoring through an end-to-end ecosystem financing approach to ensure the effective implementation of project financing. On the other hand, BI assesses the need for strengthening project preparation and improving bankability in the project pipeline, particularly for government strategic programmes. In the long term, PINISI is aimed at encouraging optimal, prudent, and innovative financing; increasing the effectiveness of project execution; and producing quality and inclusive economic growth. Ultimately, said Destry, this central bank initiative is expected to contribute to improving societal welfare and Indonesia’s competitiveness on a global level.