On the supply side, banking capacity to provide lending was more than adequate in line with the easing of Bank Indonesia’s monetary policy in the form of lowering interest rates and large liquidity injections, as well as a relaxation of macroprudential policies.
The banking survey by Bank Indonesia in the third quarter of 2020 also showed that the standard of lending was improving (Graph 31). Therefore, we view that this low credit growth condition is caused mainly by weak demand. This is closely related to weak domestic demand and unfavorable  Graph 29. SBN Ownership per BUKU Bank  Graph 31.