April 21, 2021 | Invest Indonesia

BI survey indicates increased lending allotment in 2021

Source from: Antara News

Original News HERE

Lending allotment increased during the second quarter of 2021, especially for consumption, working capital, and investment, according to a survey conducted by Bank Indonesia (BI).

The rise was apparent from the weighted net balance (SBT) of new lending allotment, at 93.3 percent, or rising from 30.4 percent during the first quarter of 2021.

“The rise in lending allotment will be driven by consumption lending followed by working capital lending and investment lending,” communication department head at BI Erwin Haryono noted here on Wednesday.

Haryono stated that the lending allotment standard during the second quarter of 2021 was also projected to be much looser as compared to the earlier period, particularly from the aspects of risky credit premium, collateral, and requirements.

The projection is based on the indication of the standard lending index that rose 2.8 percent, or four percent lower than the earlier quarter.

“The allotment policy aspects that are forecast to be not as tight as the earlier quarter are risky lending premium, collateral, and administrational requirements,” Haryono highlighted.

The survey outcomes, in general, indicated sustained optimism among respondents to the lending growth in 2021 that is projected to reach six percent by this year end, according to Haryono.

“Their optimism is geared by monetary and economic conditions as well as the relatively secured lending allotment risks,” he remarked.

Reporter: Juwita Trisna Rahayu
Editor: Suharto, Ine