Indonesia Deposit Insurance Corporation (LPS) considers that banking liquidity will have the potential to tighten until the end of 2018. This is influenced by credit growth which is faster than the growth of third party funds.
Based on the Liquidity Indicator data released by the agency, banking credit growth in September 2018 recorded 12.69% while the growth of third party funds banking only reached 6.6%. As a result, the banking liquidity to deposit ratio (LDR) reached 93.39%, over the maximum limit as regulated by Bank Indonesia is at 92%.
