Indonesia Central Bank Sees 7%-9% Loan Growth in 2022

Indonesia is expected to see more business loans this year as result of improving economic activity, central governor Perry Warjiyo said on Friday.

Warjiyo told an online briefing that Indonesia’s strong economic recovery from the pandemic — GDP grew 5.1% in the first quarter — has helped increase demand for business loans.

The country’s economic performance is also making banks more confident about extending loans, according to Warjiyo. He add the central bank forecasts 2022 loan growth to be around 7% to 9%.

The latest outlook is up from an earlier estimate of 6% to 8%. Warjiyo attributed the more optimistic forecast to the central bank’s expectation that the Indonesian financial system will remain resilient as the businesses steadily recover from the pandemic.

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