Jokowi Teases BI Governor: Money Circulation Is Getting Drier!

Jakarta –

President Joko Widodo said he had received information from business actors regarding the circulation of money in Indonesia.

“Mr Governor (Perry Warjiyo), I have heard from many business people that it seems like the circulation of money is drying up. Maybe too much is being used to buy SBN or too much is being used to buy SRBI or SVBI, so that there is less going into the real sector ,” he said at the Bank Indonesia (PTBI) Annual Meeting at Grha Bhasvara Icchana, Bank Indonesia (BI) Head Office Complex, Central Jakarta, Wednesday (29/11/2023).

Jokowi also invited all banks in Indonesia to be careful and conduct business prudently.

“You have to be careful, but please encourage more credit. Especially for Micro, Small and Medium Enterprises (MSMEs), don’t all rush to buy what I told BI and SBN earlier,” he explained. This needs to be done so that the real sector can look better than the previous year.

Then he also explained that he always checks fiscal matters, the realization of regional and central government spending. “Regional government spending realization, even though there are only three weeks left, is still at 64%. The central government is still at 76%,” he said.

From Bank Indonesia (BI) data, growth in third party funds (DPK) reached 3.43% (yoy) in October 2023. Meanwhile, banking credit in October 2023 grew 8.99% (yoy), supported by an increase in demand for financing in line with performance. corporate and maintained household consumption.

Sectorally, credit growth was mainly supported by the Social Services, Business Services and Mining sectors. Sharia financing also continues to increase, reaching 14.68% (yoy) in October 2023.

In the MSME segment, credit growth reached 8.36% (yoy), supported, among other things, by increased KUR distribution.

Going forward, Bank Indonesia will continue to encourage the distribution of banking credit/financing and strengthen synergy with the Government to maintain the momentum of economic growth, especially in priority sectors, inclusion and the green economy.

Taking into account these developments, the prospect of credit growth in 2023 is predicted to remain in the range of 9-11% and increase in 2024.

(kil/hns)