JAKARTA, July 14 (Xinhua) -- Indonesian central bank has forecast banking credit in the country will accelerate 10 to 12 percent this year as demand of financing in infrastructure sector rises, senior official of the lender disclosed here on Friday.
That was higher than the 9 percent last year, indicating that the Southeast Asia's biggest economy will accelerate at a faster pace this year.
Deputy governor of the central bank Perry Warjiyo said that as the banking credit grew 10.2 percent in May, it gives rooms for loan growth to expand at the range of 10 to 12 percent this year.
"There will be improvement" in banking credit, he said.
Demand of credit is strongly dominated by the sector of construction and infrastructure, Warjiyo added.
The government has been undertaking massive infrastructure projects to pursue over 7 percent GDP growth target in 2019.
The government projects the country's economy to expand at a faster face this year amid rising export and a better government spending.
The gross domestic product is expected to grow 5.2 percent in 2017 compared with 5.02 percent in 2016.
The central bank had applied the longest easing cycle last year by conducting rate cuts six times, and has taken neutral stance in recent months despite twice rate cuts conducted by the U.S. Federal reserve.
