BI Governor Perry Warjiyo said that out of the total incentive of IDR 268 trillion, banks have only utilized IDR 150 trillion.

"So there is still around IDR 100 trillion in incentives available for banks to expand loans. The more loans are provided, the larger our liquidity incentives will be," Perry said during the Mandiri Investment Forum on Tuesday, March 5, 2024.

Perry reassured that the macroprudential policy would continue to encourage the country's economic growth. The potential growth in the banking sector supported by credit growth could reach double digits, around 11 to 13 percent.

"We will ensure that liquidity incentives will continue. The incentives or macroprudential liquidity are provided so that banks are willing to provide loans," he added.

As reported earlier, the macroprudential policy has been in effect since October 1, 2023. BI Deputy Governor Juda Agung explained that the Phase 4 macroprudential policy increased the relaxation of the Minimum Reserve Requirement (GWM) from the original total of 2.8 percent of third-party funds (DPK) of banks to 4 percent.

"So, the total liquidity incentive provided is estimated to reach IDR 156 trillion, which is expected to boost the growth of financing credit," Juda said last September.

This amount is the accumulation of incentives for bank financing to specific sectors set at 2 percent, incentives for banks distributing inclusive financing at 1.5 percent, and incentives for credit disbursement being the largest at 0.5 percent.

Economic growth forecast and investment

On the economic front, Perry estimated that Indonesia's economic growth could reach 5.1 percent in 2024. This is influenced by the impact of the presidential election, which only takes place in a single round.

"For the next year, [economic growth] will reach around 4.8 percent to 5.6 percent," he said.

Perry believes that Indonesia's economy remains prospective in 2024 and 2025, driven by export activities, domestic consumption, and investments.

Therefore, he encourages investors to initiate investments in Indonesia, urging them not to wait or scrutinize conditions in the country.

"Don't wait; we have seen everything, so don't wait any longer. Because if we invest now, the opportunity to gain profits will be higher than just waiting and waiting," he emphasized.