Indonesia's consumer credit rising by a double-digit figure is a good sign. However, when we include investment credit and working capital credit, then overall credit growth in Indonesia is still dragged below the 10 percent (y/y) level (see table below). What do the big bankers have to say about credit growth so far in 2018?

Suprajarto, President Director of Bank Rakyat Indonesia (BRI), said consumer credit growth at his bank in the first quarter of 2018 is particularly supported by BRIGuna, a multipurpose credit product that is linked to the salary of the debtor. BRI has been increasingly focusing on this product and therefore results are starting to show. It has helped to push overall consumer credit growth at BRI to 14-15 percent (y/y) in Q1-2018.

Besides multipurpose credit, motor vehicles credit has also risen significantly in the first quarter of 2018, BRI Consumer Banking Director Handayani added. BRI will continue to focus on BRIGuna and motor vehicles credit in the second quarter of 2018.

Meanwhile, BRI's house ownership credit (in Indonesian Kredit Pemilikan Rumah, or KPR) has remained sluggish so far in 2018 and is still below BRI's target.

Jahja Setiaatmadja, President Director of Bank Central Asia (BCA), said consumer credit growth at BCA has been positive too in the first quarter of 2018. He attributed this growth to the low interest rate environment in Indonesia with the benchmark interest rate of Bank Indonesia at 4.25 percent. Rising credit growth of BCA in Q1-2018 is particularly supported by KPR credit and motor vehicles credit.

Meanwhile, Haryono Tjahjarijadi, President Director of Bank Mayapada Internasional, is less positive about his bank's consumer credit performance as it has remained below the company's target in Q1-2018. In fact, he added that "all segments within Bank Mayapada's consumer credit disbursement have been low".

Credit Growth in Indonesia:

Type of Credit January
 Feb. 2018
Y/Y Growth
Consumer Credit  1,381.4  1,392.4      11.1%
Investment Credit  1,171.4  1,171.2       4.6%
Working Capital  2,108.3  2,126.9       8.5%

in IDR trillion
Source: Bank Indonesia