Indonesia central bank sees slower loan growth in 2014

JAKARTA: Indonesia's central bank said it expects total loans to expand between 15.3 percent and 16.6 percent next year, slower than its initial forecast of 20 percent, in line with a weakening in the economy.

"This is the impact from a challenging macro (situation) and interest rate hikes," Governor Agus Martowardojo said.

The central bank estimates that loan will grow 19.1-20.4 percent this year, and that banks' non-performing loans will be between 2.3 and 2.6 percent.

For 2014, Bank Indonesia forecasts the country's gross domestic product to expand between 5.8 percent and 6.2 percent.