JAKARTA, Feb 16 (Reuters) - Loans by commercial banks in Indonesia expanded 7.9 percent in December compared with a year earlier, slowing from November’s pace of 8.5 percent, the central bank said on Thursday.
Despite Bank Indonesia’s (BI) six cuts last year to its policy rate, credit growth remains weak due to increasing volumes of bad debts, bankers say.
Non-performing loans (NPL) in December accounted for 2.9 percent of outstanding loans, according to BI.
Also on Thursday, the central bank announced it was holding its key rate unchanged at 4.75 percent. (Reporting by Nilufar Rizki, Hidayat Setiaji and Gayatri Suroyo; Editing by Richard Borsuk)