JAKARTA. Indonesia's lending growth target of 10-12% for 2020 is estimated to be difficult to achieve, because the realization of lending growth in 2019 only reached 6.1% year on year (YoY).
Lee Young Jun, an analyst at Mirae Asset Sekuritas, said that the growth in 2019 was lower than the growth recorded in 2018, 11.7%. The slowdown was driven by three factors.
"Low commodity prices, moderate economic growth, and increasing the interest to invest in bond products," explained Young Jun through his research.
Furthermore, the global economy was shaken earlier this year by the coronavirus outbreak in China. In addition, this year a number of banks set lower lending growth targets than 2019. (KR/AR)