JAKARTA Dec 15 An official at Indonesia's
central bank said on Thursday that companies have "far better"
balance sheets this year compared with 2015, which should make
banks more confident about extending loans to them.
"We see 2016 as a year of consolidation for companies, banks
and the fiscal side. The consolidation in the corporate side has
created far better balance sheets compared to last year," Juda
Agung, Bank Indonesia's executive director of economic and
monetary policy, said.
He said that although banks' non-performing loan ratio
stayed relatively high at 3.2 percent in October, it had gone
down in nominal terms, reflecting a better trend.
Agung added that the central expects annual economic growth
in the fourth quarter economic growth to remain around 5
percent. In July-September, there was 5.02 percent growth.
(Reporting by Nilufar Rizki, Hidayat Setiaji and Gayatri
Suroyo; Editing by Richard Borsuk)