Banking - Loan growth is believed to reach 12%

Banking - Loan growth is believed to reach 12% The positive banking intermediation function in Aug23 of 9.06% has makes regulators confident that banking credit growth could reached ‘23F forecast at around 10-12% yoy. According to OJK, the increase in credit in the last two months is certainly a positive indication for banks to be able to achieve their credit growth target at the end of this year. Demand and distribution of credit flowed more rapidly in the second semester, so it appears that growth will be higher. (Source : Investor Daily). Comment : We believe Indonesia banking loan growth will reach OJK, BI and KBVS ‘23F forecast for industry loan growth. Working capital should continue as the backbone growth, in our view. Meanwhile, consumer loan likely to remain stays on its growth trajectory and at the same time investment loan could grew better qoq in 4Q23 as signed from the upcoming election situation possibly clearer, which will make corporates capex appetite to resume post wait and see stance.