Bank Credit Growth Slows to 9.37 Per Cent in February 2026, BI Remains Optimistic

JAKARTA — Bank Indonesia (BI) recorded slower banking credit growth in February 2026 compared to the previous month.

Bank Indonesia Governor Perry Warjiyo stated that in February 2026, credit grew 9.37 per cent on a year-on-year basis. This result was lower than January 2026, which recorded 9.96 per cent year-on-year growth.

Credit growth was supported by investment credit, working capital credit, and consumer credit, which grew 20.72 per cent, 3.88 per cent, and 6.34 per cent year-on-year respectively in February 2026.

“Banking credit growth continues to be strengthened to support economic growth,” Warjiyo said during a Bank Indonesia Monetary Policy Review press conference on Tuesday, 17 March 2026.

On the demand side, Bank Indonesia observed that the utilisation of banking financing remained suboptimal. This was evident from the still high level of undisbursed credit facilities amounting to Rp 2,536.40 trillion or 22.86 per cent of the available credit ceiling.

Meanwhile, on the supply side, banks’ financing capacity was deemed adequate, supported by a Liquid Assets to Third-Party Funds (LA/TPF) ratio of 27.40 per cent and third-party funds that still grew strongly at 13.18 per cent year-on-year in February 2026.

“Interest in credit distribution by banks remains strong, as reflected in the still flexible credit terms, except in the consumer credit and small-and-medium enterprise segments due to persistent high credit risk in both segments,” Warjiyo said.

Going forward, to encourage banking credit growth, Bank Indonesia will continue to strengthen banks’ funding capacity, including the development of non-traditional funding instruments (non-TPF). Bank Indonesia will also continue to coordinate with the government and the Financial System Stability Committee (FSSC) to improve the interest rate structure and encourage banking credit growth.