BI Predicts Credit Growth to be Slower in 2014

Jakarta (Antara) - Bank Indonesia predicts credit will grow slower in 2014 at between 15.3 and 16.6 percent, compared to this year's prediction of 20 percent. The central bank's governor, Agus Martowardojo, said in a "Seminar Outlook 2014" here on Thursday that economic stabilization efforts are predicted to continue until next year and, therefore, credit growth is expected to be slower. "Stabilization efforts are needed to maintain our current account deficit at a more sustainable level," he said, adding that the current high rate of interest would also make credit growth remain at between 15.2 and 16.6 percent. Agus said the growth of credit at this level would become a driving factor for economic growth in 2014, which BI predicts will reach 5.8 to 6.2 percent. "If the growth of credit is higher than that, it is feared it will create unnecessary pressures on our economy," he said. He added that sectors that must be pushed to grow in 2014 were those that could help increase exports and job opportunities. "Activities linked to manufacturing and service sectors are the ones that could be increased in the future," he said. Regarding third party funds, BI predicts they will grow at between 15.4 and 16.4 percent in 2014, while non-performing loans are predicted to stay at a range of 2.8 to 3.1 percent. (*)