Banking Credit Distribution in Bali is Not Even


The representative office of Bank Indonesia Region III Bali-Nusa Tenggara stated that the distribution of banking credit in Bali until the second quarter of 2013 is Rp44.77 trillion but it isn’t even and mostly centered in Denpasar and Badung Regency.

“The business map both Micro Small and Medium Business (UMKM) and big companies are more centered on three regions (Denpasar, Badung and Gianyar), automatically more funding there,” said the Head of representative office of Bank Indonesia Region III Bali-Nusa Tenggara Dwi Pranoto in Denpasar.

According to him, inequality of credit distribution one of them is caused by spread of bank offices more in those three regions.

In Bali there are 50 public banks, including two local banks, Bank Pembangunan Daerah (BPD) Bali and Bank Sinar Harapan Bali and 138 Bank Perkreditan Rakyat (BPR) and one of them is Syariah.

“Out of the total number, 75 percent mostly established in Denpasar, Badung Regency and Gianyar Regency,” he said.

He explained that there is other potency that could be developed in other regions other than those three regions without opening new bank office, which is via “branches banking” or bank agency.

Bank agency could use individuals that is expected improving banking access for people living in remote area. However, it needs further development and strength.

Nonetheless, the effort isn’t enough if business in that region isn’t developed, which one of them is through bank partner finance consultant (KKMB) training.

“We also ask Banks to go to other regions through their account officers, besides encouraging the local government related to its economic development, business line and clusters under Bank Indonesia,” said Dwi.

Furthermore, he explained that from the total of credit distribution until the second quarter of 2013 from public banks reaching Rp44.77 trillions, the credit distribution in Denpasar is the biggest, which is Rp29 trillion or 64.78 percent.

While in Badung Regency is Rp4.2 trillions or 9.38 percent, then is followed by Buleleng (6.08 percent), Tabanan (5.25 percent) and Gianyar (4.56 percent).

Meanwhile, three regencies with the percentage under three percent are Karangasem (2.97 percent), Jembrana (2.51 percent) and Bangli (2.23 percent).

Although the credit distribution is uneven, it grows positively.

BI Denpasar recorded the total number of credit distribution increased 30.38 percent, which is higher than the same period last year that was 30,03 percent.

Not only credit distributed by general banks, credit from BPR also grows significantly 31.06 percent, with the amount of credit up to May 2013 is Rp 5.22 trillions.

The central bank encouraged acceleration of equal growth by approaching people financial access, one of them is through giving productive credit.

Credit given by general banks until the second quarter of 2013 is dominated by productive credit, which is 61.74 percent consisting of working capital credit (38.8 percent) and investment credit (22.94 percent).

“From the total of banking credit, 39.19 percent is categorized UMKM productive credit,” said Dwi.

The biggest distribution of UMKM productive credit is still in Denpasar, which is Rp10.4 trillion or 58.55 percent of the UMKM productive credit in all areas of Bali.

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The Island

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