Banking - Projected motor vehicle loans to continue increased

Banking - Projected motor vehicle loans to continue increased Motor vehicle loans have supported the growth of banking consumer credit throughout 2023. The condition of vehicle credit is projected to continue accelerating in 2024. Bank Indonesia (BI) noted that consumption credit throughout 2023 grew 13.2% annually (yoy) to IDR1,998.3 tn. Where, motor vehicle loans can grow faster at around 13.2% yoy with a still small contribution of around IDR133.2 tn. (Source: Kontan). Comment: Loan growth should remain intact in 2024. Consumer loan will strongly underpin the growth as we think investment loan demand appetite likely to continue waiting for the domestic election result. Of the consumer segment board, automotive potentially grow strong, despite we expect property loan will grew slightly better supported by latest relaxation on the sector.