The central bank (Bank Indonesia/BI) projects credit growth in 2018 at 10.0-12.0% (yoy), accelerating from the 8.2% (yoy) realized in 2017. Meanwhile, BI still predicts deposit growth to slow down from 2017 achievement of 9.4% (yoy), yet remain within the 8.0-10.0% (yoy) range.
Credit growth was reported to accelerate from 10.8% (yoy) to 11.3% (yoy) in July 2018, while deposit growth was maintained at 6.9% (yoy) in the reporting period compared with 7.0% (yoy) the month earlier.
Maintained financial system stability is reflected in the high Capital Adequacy Ratio (CAR) reported by the banking industry at 22.5% and the liquidity ratio of 19.8% in July 2018. In addition, the banking sector maintained a low level of non-performing loans (NPL) at 2.7% (gross) or 1.3% (net).