According to the latest Bank Indonesia Banking Survey, credit disbursement in Q4 2024 demonstrated remarkable growth. The Weighted Net Balance (SBT) for new loan distribution reached 97.9%, significantly higher than the 80.6% recorded in the previous quarter. Investment and working capital loans emerged as the primary drivers of this surge.

Looking ahead to Q1 2025, new credit disbursement is forecast to maintain robust levels, with an expected SBT of 82.3%. This indicates that the lending market remains strong despite potential challenges.

However, stricter lending standards are expected to persist in early 2025. The Lending Standard Index (ILS) showed a positive value of 0.2, suggesting no easing in policies related to credit ceilings, interest rates, or risk premiums. These tightened standards could impact the accessibility of loans for borrowers in certain categories.

Despite this cautious approach, survey respondents remain optimistic about credit growth throughout 2025. Several factors contribute to this positive outlook, including favorable economic and monetary conditions and manageable credit risks. This confidence underscores the resilience of Indonesia's financial system and its ability to adapt to evolving economic dynamics.

Investment loans have been a major focus, reflecting businesses' confidence in the country's economic trajectory. Similarly, working capital loans highlight the continued demand for financing to sustain operations across sectors.

Bank Indonesia’s findings suggest that the credit sector will remain a vital component of the nation's economic framework, supporting growth while balancing the need for risk management. These trends indicate a promising year ahead for both lenders and borrowers.

PHOTO: PIXABAY