The Head of Banking Supervision at the Financial Services Authority\n(OJK), Dian Ediana Rae, stated that the phenomenon of undisbursed loans,\nor unused credit, recorded in private banks is a common occurrence in\nthe banking business cycle.<\/p>\n
According to him, this condition often occurs repeatedly from year to\nyear. This is because borrowers who have signed credit agreements\nusually already have expansion plans. However, the actual disbursement\nof funds still depends on business calculations and the assessment of\nthe economic situation.<\/p>\n
\u201cIf we look at it, I think it\u2019s something normal that happens every\nyear. Business people will look for opportunities,\u201d said Dian after the\n2nd Indonesia Climate Banking Forum in Jakarta, as quoted by Antara,\nThursday, February 26, 2026.<\/p>\n
Based on data from Bank Indonesia (BI), the amount of undisbursed\nloans reached IDR 2,506.47 trillion as of January 2026. Dian further\nexplained that the decision to draw credit is greatly influenced by the\nbusiness climate, investment prospects, and global and domestic\ndynamics.<\/p>\n
Therefore, he clarified that the large amount of undisbursed loans\ndoes not necessarily reflect weak credit demand, but rather part of the\nborrower\u2019s business strategy in managing expansion.<\/p>\n
(Illustration of the OJK logo. Photo: dok MI)<\/p>\n
Credit distribution has increased<\/p>\n
Dian said that OJK recorded a significant increase in credit last\nmonth, especially in the corporate segment.<\/p>\n
On the other hand, Bank Indonesia (BI) recorded credit growth of 9.96\npercent year-on-year (yoy) in January 2026. Meanwhile, growth in\nthird-party funds (DPK) reached 13.5 percent (yoy).<\/p>\n
Regarding the micro, small, and medium enterprise (MSME) sector, Dian\nsaid that further encouragement is still needed to optimize its\ngrowth.<\/p>\n
\u201cSo, we do see that last month there was a significant increase,\nespecially in the corporate sector. MSMEs still need to be encouraged.\nBut this is certainly not impossible,\u201d he said.<\/p>\n
In the future, the authorities hope that improvements in global and\ndomestic conditions will encourage more expansive credit distribution.\nSeveral strategies that have been prepared by the regulator are expected\nto start having an impact in the coming months.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-states-unused-credit-is-a-normal-phenomenon-in-the-banking-cycle-1772154838", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }