Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Finance  >>   Indonesian bank lending to slow
NEWS UPDATES Asean Affairs     19 October  2011

Indonesian bank lending to slow

Related Stories

September 19, 2011
Labor problems in Cambodia

August 11, 2011
Beer attendant protest in Cambodia

June 20, 2011
Labor shortage in Cambodia’s special zone

May 17, 2011
Cambodian migrant workers at risk

February 23, 2011
Cambodian garment benefit talks held

With string signs that a global economic slowdown is coming in 2012, Indonesia’s central bank forecast commercial banks’ loan growth to slip next year.

Halim Alamsyah, a deputy governor at Bank Indonesia, predicted on Tuesday that Indonesian lenders would post a 23 percent to 24 percent growth in loans for 2012. That compares to a 24 percent to 25 percent growth rate for this year, as predicted last week by BI governor Darmin Nasution.

The recent global financial crisis left Indonesian companies wondering how much they will be able to export, making it difficult for them to assess how much they should borrow from banks.

That uncertainty has affected mainly loans denominated in foreign currencies, such as the dollar. Since those types of loans account for only 20 percent to 25 percent of total loans, the impact on total lending will be minimal, according to Halim.

“Loan growth won’t change that much,” Halim said. “Even if it falls, it will only decline slightly.”

New data from BI showed that loans at the nation’s 120 commercial banks in the January-August period rose 23 percent to Rp 2,031.61 trillion ($229.6 billion) from a year earlier. Rupiah-denominated loans accounted for 84 percent of the total.

In 2010 outstanding loans rose 24 percent to Rp 1,742.85 trillion from a year earlier.

Darmadi Sutanto, a director at Bank Negara Indonesia, said global uncertainty had a limited impact on Indonesia’s banking sector. Strong car and motorcycle sales have driven consumer loans, he said, while low interest rates have boosted housing loans.

“Indonesians still want to consume,” Darmadi said. “Our economy won’t change that drastically in a way that consumers would be forced to tighten their belts.

In a surprise move to ensure domestic growth amid global financial turmoil, BI earlier this month lowered its key interest rate by a quarter percentage point to 6.50 percent, citing easing inflationary pressures. It was the central bank’s first action since February, when it raised the rate by a quarter percentage point to 6.75 percent.

Agustinus Prasetyantoko, an economist at Atma Jaya University in Jakarta, said the rate cut has not yet pushed lenders to lower their lending rates.

The prime lending rate — the rate charged by lenders to corporations, retailers and consumers — was still hovering at a range of 7 percent to 20 percent.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    19  October  2011 Subsribe Now !
•   Obama to visit Cambodia in 2012 Subcribe: Asean Affairs Global Magazine
   China donates scanners to Cambodia Asean Affairs Premium

   Indonesian government installs new cabinet

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

  Indonesian bank lending to slow
•   Genting to open New York casino
    Aquino ratings are up
   Thailand moves on water management

•   Thai industries hit by flooding 


Asean Analysis              19  October  2011

Advertise Your Brand
• Cambodia getting attention Sponsor Our Events

Asean Stock Watch      19  October  2011

• Asean Stock Watch-October 19 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand