JAKARTA – PT Bank UOB Indonesia is targeting drastic growth in credit distribution rate at the end of 2024, reaching 20% year-on-year (yoy), or far exceeding the projection set by Bank Indonesia (BI) for banking industry.

“If we are talking about credit, this year, we saw growth in the second semester is quite optimistic,” said Harapman Kasan, Director of Wholesale Banking of UOB Indonesia, when met at UOB Economic Outlook 2025 today (25/9) in Jakarta.

“We will record, at the end of this year, year-on-year, probably at approximately 20%. It could be considered high, as for the industry, if not mistaken, the growth rate is set to roughly 10-12%,” added Kasan.

Not only that, Kasan also revealed ambitious projection by UOB Indonesia to score credit growth of another 20% in 2025. It will be supported by UOB Indonesia’s heavy focus on facilitating international transaction, as well as attracting foreign investment to Indonesia.

“UOB, as a regional bank, has a vision of how to develop or assist Indonesia in terms of export-import trades, and how to bring in foreign direct investment to Indonesia. Therefore, we also have opportunities to collaborate with local banks, because if we are talking about FDI inflow, the amount is usually quite magnanimous. We might not be able to handle it alone,” said Kasan.

In line with this drastic credit growth projection, Enrico Tanuwidjaja, ASEAN Economist of UOB Indonesia, also expects credit growth in banking industry to be able to close in 15%.

“In the future, I am quite optimistic that with the rate cut, loan growth shall automatically increase,” added Tanuwidjaja. BI indeed reportedly lowered the interest rate (BI-rate) to 6%, down 25 bps, last week (18/9). (ZH)