The average bank loan distribution in five provinces in Kalimantan slowed down even in the first quarter of 2020.
The Covid-19 pandemic, which has an impact on the policy of implementing restrictions on activities, is considered to affect credit growth. Loans or loans in the first quarter were close to or beyond the overall lending in 2019.
East Kalimantan province which relies on the coal mining sector as the main regional income still contributes the largest contribution to lending compared to other provinces.
In addition, the still joining of North Kalimantan Province (Kaltara) with Kaltim makes the provincial credit that will become the capital of the country fatter than other provinces.
The distribution of Kaltim credit in March 2020 amounted to Rp95.11 trillion. The second largest loan distribution in Kalimantan is West Kalimantan at Rp76.2 trillion.
Followed by South Kalimantan province worth Rp55.16 trillion and lastly Central Kalimantan contributed Rp49.83 trillion.
Kalimantan Meanwhile, the loan structure in West Kalimantan with a total of Rp81.74 trillion (rupiah and foreign exchange) is dominated by investment sector loans worth Rp35.32 trillion.
Followed by consumption loans reached Rp25.48 trillion and working capital of Rp20.93 trillion. Total loans in March 2020 is higher than the same period last year which recorded Rp76.20 trillion.
On the other hand, the overall distribution of MSMEs loans reached Rp22.06 trillion. With the largest contributor of credit recipients from the medium sector as much as Rp10.08 trillion, small businesses reached Rp8.09 trillion and micro as much as Rp3.88 trillion. For the MSME credit sector, in March 2019 reached Rp20.18 trillion.
Bank Indonesia in its release stated that credit distribution in the second quarter of 2020 is expected to be looser for working capital loans and MSMEs loans.
The easing includes credit interest rates, credit approval fees, credit periods and credit ceilings. The beleid was issued due to credit growth during the first quarter of 2020 which slowed due to Covid-19.