Which Sector-Based Bank Lending Facilities can Contribute to Long-Term Economic Growth? : Indonesian Study

Knowing which sector credit facilities can contribute to increasing economic growth in the long term Indonesia, is main objective of research. This research uses secondary data as quarterly from 2010Q1 2019Q4. Using VECM approach identify long-term effects, equipped with structural analysis determine response shocks well resulting contribution. Overall sectoral bank have a significant impact on GDP, it was found, though different nature. The positive nature for agricultural sector, wholesale and retail trade transport, warehousing communications sectors, while manufacturing, construction, financial intermediaries had opposite impact. A shock construction intermediary loans responded positively short term, manufacturing received largest negative response. contribution came credit, lastly, credit. Researchers suggest allocations agribusiness, discount exchange, transport sectors meet goals, maximizing allocation between sector.