Bank Indonesia (BI) reported that lending grew 8.4 percent

Bank Indonesia (BI) reported that lending grew 8.4 percent year on year (YoY) to Rp4,333 trillion in February 2017, or an increase compared to January 2017 at 8.2 percent YoY.

Working capital loans (KMK) and investment loans grew by 11.8 percent YoY and 9.7 percent YoY, respectively, BI spokesman Tirta Segara stated in a written statement in Jakarta on Sunday, April 2, 2017.

“KMK in February amounted to Rp2,042 trillion, whereas Investment Loans amounted to Rp1,119 trillion,” Tirta said.

Bank Indonesia reported that working capital loans, particularly in processing sector grew by 8.2 percent YoY compared to 1.2 percent YoY in January 2017, and financial sector, such as real estate and services grew by 21.8 percent YoY compared to 13.5 percent YoY in January 2017.

As for investment loans, according to BI, significant growth of 15.8 percent YoY in trade, hotel and restaurant took place in February 2017 compared to 10.9 percent YoY in January 2017. The financial sector, such as real estate and services, also grew by 15.9 percent YoY compared to 13.5 percent in January 2017.

Moreover, Bank Indonesia noticed that micro, small and medium-sized enterprises (SMEs) grew significantly by 29.8 percent YoY or Rp946.3 trillion compared to 8.5 percent YoY in January 2017. “Lending growth in SMEs occurred in working capital and investment loans,” Tirta said.

Meanwhile, property sector tumbled in February 2017 with 15 percent YoY growth or Rp706 trillion compared to January 2017 at 15.1 percent YoY.