JAKARTA. The Financial Services Authority (OJK) stated that throughout 2019, bank lending only grew by 6.08%.
Chairman of the Board of Commissioners at OJK, Wimboh Santoso, stated that the slow growth was mainly caused by weak demand for commodities in the global market. On the other hand, stability of the financial service sector is well maintained, amid a turbulent global economy. This is supported by an adequate level of capital and liquidity, and a maintained risk profile, said Wimboh.
"The intermediary function of financial service institutions has moderated, while remaining in line with domestic economic growth. Bank lending in 2019 grew by 6.08% in line with weak global commodity demand," Wimboh said at the Financial Services Industry Annual Meeting in Jakarta on Thursday (16/1).
According to him, bank lending growth was dominated by BUKU IV banks, which recorded growth of 7.8% YoY, followed by BUKU III (2.4% YoY), BUKU II (8.4% YoY), and BUKU I (6.4% YoY). The growth was supported by the construction sector, which grew by 14.6% YoY, and households (14.6% YoY).
Accordingly, investment loan grow by 13.2%, which shows the potential for future real sector growth. (AM/AR)