PREDICTION of INDONESIAN BANKING 2015: Investment Credit is still Depressed

The banking industry in Indonesia projecting credit rate of investment this year to grow better than the previous year, but the flow of funds in these sectors increasingly slowing down. Based on the Banking Statistics Indonesia, channelling investments to November 2014 reached Rp881,51 trillion, growing 13,73% of position of Rp775,08 trillion in the same period a year earlier. The rate of investment credit terkontraksi in 2014, when compared to the previous year who grew up 34.95%. In addition to the investment credit slowdown occurred by the banking industry. On average, the ratio of bad debt (non performing loan/NPL) the sector chalked up an increase of 1,83% in November 2013 to be 2.63% in year on year. Deterioration of credit quality also goes on working capital loans. As for the NPL loans working capital until November 2014 reach 2.68% 2.09% of the position increases. The rate of the sector was experiencing a credit slowdown growth of 20,44% in 2013 become 11,59% until November 2014. While the working capital credit and investment slowed down, even as consumption notes growth tends to be stable. As for the total credit disbursed until November 2014 reached Rp 1.001 trillion, growing 10.81% of position of Rp903,33 trillion in the same period a year earlier. Credit quality also records the full consumption be 1.53%. In the survey of banking/2014 IV quarter, BI records of the type of use, new credit demand growth is strong enough to occur on credit investments, whereas the working capital credit and credit consumption is still sluggish. Based on the type of credit according to usage, the percentage of reponden that do not reach the target of channeling credit consumption reached 39.1%, higher than the 28.3% working capital loans and syndicated loans reached 32,6%. The survey mentions one priority banking in channeling new credit is large and retail trade sectors, sectors of the processing industry and the sectors of transport, warehousing and communications. From the side of the customer Debitor, micro, small and medium enterprises (UMKM) is not yet a top priority reponden in channeling new credit. President Director of PT Bank Mayapada International Tbk Haryono Tjahjarijadi disclose the investment loan growth lower than the working capital credit. However, the company is projecting higher growth this year. "Credit growth Projection this year investment of approximately 20%-25%," he said, recently. Haryono reveals the challenges frequently faced by banks in channeling credit investments the mismatch. For syndicated loans need a funding source in the long term. Source: Bisnis.com

This man went from being thousands of dollars in debt…