Bank Indonesia (BI) announced that the credit contraction as of February this year is getting deeper.

"Amid conditions of loose liquidity, the financial sector intermediation function is not yet strong, as reflected in the credit contraction in February 2021 of 2.15% YoY compared to a contraction of 1.92% YoY in January 2021," said the Governor of Bank Indonesia, Perry Warjiyo, in Jakarta, on Thursday (18/3).

BI has taken various strengthening measures in line with the synergy of the KSSK, banks, and the business world to maintain optimism and overcome supply and demand-side problems in channeling credit/financing from banks to businesses to promote national economic recovery.

Bank Indonesia continues to pursue accommodative macroprudential policies, including current down payment policies for motor vehicle credit/financing and loan to value/financing to value (LTV) / (FTV) Credit / Property Financing.

Bank Indonesia will also encourage increased credit and banking financing to the business world while maintaining financial system stability by expanding the financing component and the gradual reactivation of the Macroprudential Intermediation Ratio (RIM / RIM Syariah).

BI ensures that the bank's capital adequacy ratio (CAR) for January 2021 remains high at 24.40%, and the ratio of non-performing loans (NPL) remains low, 3.17% gross and 1.03% net.