BI Targets 11% Credit Growth
By Mei Ling Tan
1 min read
Governor of central bank Bank Indonesia Agus Martowardojo said that BI is targeting bank credit growth by 11 percent next year.
According to him, the target is expected to be reached due to the influx of fresh funds into financial institutions through the tax amnesty.
“We consider that the tax amnesty will bring enough funds,” he said in Jakarta on Friday.
The estimate, however, is lower than that of the original target of 12.7 percent.
According to Agus, the change coincided with the approval of the 2017 economic growth target of 5.1 percent.
Assumptions credit growth of 12.7 percent, he said, is met if the government and the House of Representatives agreed on economic growth target of 5.2 percent.
The cause of the slow growth of credit is the weakening global economic growth, which is below 3.5 percent, he added.