Bankers still doubt that loan demand will improve at the beginning of this year to increase the growth rate to a positive direction.
Herwidayatmo, managing director of PT Bank Panin Tbk., said the bank only started trying to expand its loans at the beginning of this year. However, the loan demand that drives positive annual growth has not yet been realized.
On Monday (18/1), he said: “Positive loan growth has not yet been achieved. However, Pan-India Bank has just committed to improving loan performance.”
He also said that Pan-India Bank was still paying more attention to maintaining debtors’ business conditions. This was done to make the performance of the intermediary function more sustainable. He said: “We will continue to maintain this year’s performance. The efficiency of the banking business will also be carried out within the scope of good bank management and control.”
Darwin Wibowo, wholesale banking manager of PT Bank Permata Tbk (stock code BNLI) also said that since the beginning of the year, large debtors still had a high repayment capacity, so they were still reducing their loan share. “Maybe it is too early (in the hope that loans will have positive growth). There are some loan applications in preparation, but they are still in the early stages of this year. It may take a few months to appear. However, we must be optimistic.”
He went on to say that some companies tried to reduce the burden by repaying debts. Gembank also hoped that the economy could recover more quickly, thereby improving the debtor’s view on business expansion.
Piter Abdullah, Director of Research at the Indonesian Center for Economic Reform, admitted that some indicators and economic activities have begun to increase this year and loans could be increased, especially working capital loans. However, he said that the decline in loans last year was classified as very serious and it is difficult to return to a positive trend in a short period of time.
On Monday (18/1) Piter said: “At the end of last year, the performance of loans declined and will not be able to rise rapidly. We need to realize that the performance of loans in the first quarter of last year is still growing moderately.”
Loan performance in the first quarter of last year increased by 7.2% year-on-year. However, by the end of 2020, this trend has actually reversed to negative (-) 2.41%.
He said the banking industry will still wait and see and focus on restructuring to maintain loan quality. Even with sufficient capital and liquidity, the expansion of new debtors is very strict. In addition, Piter believes that the trend of people repaying loans is still higher than that of adopting new loan instruments.