Every year, the amount of credit available from banks in Indonesia grows up. According to the Central Statistics Agency (BPS) data.

https://www.bps.go.id/id/statistics-table/2/MjM2MSMy/posisi-kredit-perbankan-dalam-rupiah-dan-valuta-asing-menurut-sektor-ekonomi.html). The BPS website has tables of statistics that illustrate how much banking credit there is in rupiah and other currencies per economic sector. But if credit growth isn’t kept in check, it might cause issues. So, to manage bank credit well, you need to know a lot about money.

Source: Central Statistics Agency (BPS)

Being financially literate is being able to understand money matters and make smart money decisions. People who are financially literate can better manage their money, make smart investments, and stay away from financial pitfalls. People that are financially literate also learn how to use credit wisely and stay out of debt that they don’t need.

The Central Statistics Agency (BPS) says that the situation of banking credit by economic sector can be looked at in the following main industries:

• Agricultural industry: Credit in the agricultural industry is used to pay for things like seeds, fertilizers, and farming tools.

• Industrial Sector: Credit in the industrial sector is used to pay for output and growth in the industrial sector.

• Service Sector: Businesses in the service sector utilize credit to pay for things like education, healthcare, and financial services.

• Consumer Sector: Credit in the consumer sector is used to pay for things that people need for their homes, such buying electronics, cars, and other things.

One of the most common sorts of credit for people is household consumer credit. But if this credit isn’t handled properly, it might be a problem. The Central Statistics Agency (BPS) says that banking credit for the residential consumption sector is growing steadily every year.

If you don’t handle your household consumer credit well, it can have these bad effects:

• Installment Burden: Household consumer credit can put a strain on household finances because payments are due every month.

• Danger of Non-Performing Loans: If people don’t pay their household consumer credit, there is a danger of non-performing loans, which can hurt the bank’s finances and the economy as a whole.

Being financially literate can assist fix the problem of bad home consumer credit. People that are good with money know that they need to handle credit wisely and make smart financial choices.

Every year, more and more people in Indonesia are getting bank credit. But if credit expansion isn’t managed well, it could lead to problems. To use banking credit properly, you need to know a lot about money. People who are really good with money know that they need to handle credit wisely and make smart financial choices. Because of this, we need to work to make more people financially literate, especially when it comes to managing credit for their homes.

There are a number of ways to stop this from happening. First, people need to learn about money management at a young age so they can learn how to handle their resources well. Second, banks need to improve their credit supervision so that clients handle the credit they get properly. Third, improving people’s financial literacy is important, and the government and banks need to work together to do this, especially when it comes to managing residential consumer credit.