JAKARTA, Nov. 7 (Xinhua) -- The ratio of non-performing loans of banking sector in Indonesia trimmed in September, indicating that the economy has accelerated.
Head of Financial Authority Service Muliaman Hadad said that the ratio of non-performing loan decreased to 3.1 percent in September from 3.2 percent in August.
"Although the economy did not accelerate at a faster pace, a positive trend of the economy has been signaled. Non-performing loans were down, banking credit disbursement rose," he said at the Borobudur Hotel.
Southeast Asia's biggest economy expanded at a slower pace in the third quarter at a rate of 5.02 percent, down from 5.18 percent in the previous quarter, the national statistic bureau announced on Monday.
The decline of the non-performing loans eases wariness of banking sector that may trigger more loans, Muliaman said.
The central bank forecasts loan growth at 7 to 9 percent this year with GDP growth estimated at 5.2 percent.
The lender, which has applied the longest easing cycle since the global financial crisis, aims to continue the policy to help spur growth, it has said.
Still, rupiah has gained around 6 percent against the U.S. dollar this year and was traded at 13,082 on Monday, according to the bank's website.
That along with the expectation of country's steady moderate growth this year and next year may lure foreign capitals amid contraction forecast in other nations.
