BANDUNG- West Java Bank Indonesia (BI) Head, Wiwiek Sisto Widayat said that Banking Deposit until May 2017 has increased, but on the other hand the credit distribution has decreased.
West Java Third Party Fund(DPK) in May 2017 compared to the first quarter of 2017 rose to 8.35% from 8.20%, driven by growth in banking giro that increase.
The slowing credit growth was recorded from 8.40% to 8.06% mainly on investment credit and consumption.
"Banks are predicted to consolidate by holding credit expansion amid rising credit risks or NPL that increase," he said on Friday (7/7) at the Press Conference "Latest Macroeconomic Indicators Progress" at Bank Indonesia Regional Office of West Java Province.
Sectors that have a high risk in credit distribution and the main concern of the banking sector is the construction and business services world. Spatially, the majority credit distribution is concentrated in the industry-based region. While the collection of DPK is concentrated in urban areas based on trade.
For Micro Small and Medium Enterprises (UMKM) sector, Non Performing Loans (NPL) decreased especially for NPL UMKM sector of trading and processing industry. Jo