Bank Credit Growth Returns to Double Digits

Bank credit growth has again penetrated double digits in May 2026 after spending some time in single-digit territory, signalling that financing activity is beginning to strengthen and potentially support economic growth amid global uncertainty.

Bank Indonesia (BI) Governor Perry Warjiyo said bank credit in May 2026 grew 11.51 percent year-on-year (yoy), higher than the 9.98 percent growth recorded in April 2026. “Bank credit in May 2026 grew by 11.51 percent (yoy), higher compared to the growth in April 2026 of 9.98 percent (yoy),” Perry said during a press conference following the BI Board of Governors Meeting for June 2026 on Thursday (18/6/2026).

According to Perry, credit growth was supported by all usage categories. Investment credit posted the highest growth at 21.95 percent, followed by working capital credit at 8.09 percent and consumer credit at 5.89 percent. The strong credit growth is considered important because bank financing remains one of the main engines of national economic activity, particularly for supporting business expansion and investment.

BI estimates that credit growth throughout 2026 will remain in the range of 8 percent to 12 percent. “Bank Indonesia estimates that 2026 credit growth will be maintained in the 8-12 percent range,” Perry stated. This outlook is supported by the still-large amount of undisbursed loan facilities, which reached Rp 2,576 trillion, equivalent to 22.41 percent of the total available credit ceiling.

In addition, banks’ financing capacity is deemed adequate. The ratio of Liquid Assets to Third-Party Funds (AL/DPK) was recorded at 24.74 percent in May 2026, while Third-Party Funds (DPK) grew 13.47 percent year-on-year. Perry said interest rate developments are also expected to support credit distribution. In May 2026, the average lending rate was recorded at 8.72 percent, while the one-month deposit rate stood at 4.26 percent.

On the other hand, BI assesses that the banking industry’s resilience remains strong amid rising global risks, including the conflict in the Middle East. The banking sector’s Capital Adequacy Ratio (CAR) in April 2026 was recorded at 23.97 percent. Meanwhile, the Non-Performing Loan (NPL) ratio remained low, at 2.17 percent gross and 0.84 percent net. “Bank Indonesia’s stress test results show that banking resilience remains strong in facing various risks, including the contagion effects of the ongoing war in the Middle East, supported by well-maintained corporate repayment capacity and profitability,” Perry said.