Banking: Bank Indonesia estimates loan growth at 10% for 2015
Bank Indonesia (BI) projects overall loan growth in the banking industry to reach 10% by year-end. In 8M15, loan growth in the industry reached 10.4%, slightly lower than the 11.1% in 9M15. According to BI’s Executive Director of economic and monetary policy, loan growth is expected to remain flat till the end of the year, slightly lower than BI’s target of 11-13%. BI’s loan growth projection for 2016 remains at 12-14% and GDP growth estimate remains in the range of 5.2-5.6%. BI has indicated that there is room for monetary expansion, either by reducing the BI reference interest rate or the minimum current account statutory reserves requirement (GWM).