Banking - Credit distribution rises in the second quarter

Banking - Credit distribution rises in the second quarter Bank Indonesia’s Banking Survey (SPBI) projects that credit distribution in the second quarter of 2025 will rise from the first quarter, supported by the continued implementation of credit disbursement relaxation policies. The forecast is based on an increase in the Weighted Net Balance (SBT) indicator to 81.99%, from 55.07% in the first quarter of 2025. According to the SPBI published on Monday (28/4), respondents’ top priorities for new credit disbursement in the second quarter of 2025 are working capital loans, investment loans, and consumer loans. For consumer loans, mortgage loans (KPR) and apartment ownership loans (KPA) remain the main priorities, followed by multipurpose loans and vehicle loans (KKB). The manufacturing sector is expected to absorb the largest portion of credit in the second quarter of 2025, followed by the wholesale and retail trade sector, and the financial intermediation sector. Meanwhile, outstanding credit by the end of 2025 is forecast to reach 9.89%, up from the 2024 realisation of 9.67%. Outstanding credit projections for the first quarter of 2025 are considered moderate compared to the fourth quarter of 2024 forecast of 10.35%. SPBI respondents remain optimistic about the growth of outstanding credit, driven by favourable monetary conditions, sustained economic growth prospects, and manageable credit distribution risks. (Source : Idn Financials)