JAKARTA - New credit disbursement in the first quarter of 2023 is expected to grow in line with the easing of lending policies.

Erwin Haryono, Executive Director, Communication Department of Bank Indonesia (BI) conveyed that the Weighted Net Balance (STB) in the first quarter of 2023 is estimated to be 88.3% credit demand, up from 86.3% in the fourth quarter of 2022. "The priority for channeling new loans to working capital and investment credit, including consumption," he said in a banking survey press release released Friday (20/1).

For consumer loans, survey respondents prioritized the distribution of housing loans (KPR), multipurpose loans and motor vehicle loans. Prioritizing the lending sector is the Processing Industry, Wholesale and Retail Trade, and Financial Intermediaries.

New credit distribution in the first quarter of 2023 is expected to ease. The Lending Standard Index (ILS) is at minus 0.5%, lower than in the fourth quarter of 2022 at 0.0%.

The main credit policy easing is expected to occur in Working Capital Loans, particularly aspects of the time period and credit approval costs. (LK/LM)