Bank Indonesia: Credit distribution capacity remains ample to support economic growth

Jakarta (ANTARA) - Bank Indonesia (BI) has stated that credit distribution capacity remains ample and can be optimised to support higher economic growth.

Senior Deputy Governor of Bank Indonesia Destry Damayanti, in a written statement in Jakarta on Saturday, said that credit growth in December 2025 of 9.69 per cent year-on-year helped support Indonesia’s economic growth to 5.11 per cent year-on-year throughout 2025.

Based on this performance, BI sees significant opportunities for Indonesia’s economy to achieve higher growth. Moreover, banking sector liquidity availability remains adequately available.

“In January 2026, the undisbursed loan facility of banks was recorded at Rp2.506,47 trillion or 22.65 per cent of the available credit ceiling, which can continue to be optimised as a driver of higher growth,” explained Destry.

For this reason, BI has urged banks to continue adjusting special rates to encourage faster declines in credit interest rates, so that financial intermediation strengthens further.

“Going forward, intermediation in 2026 is projected to remain solid in the range of 8–12 per cent year-on-year, in line with credit growth in January 2026 reaching 9.96 per cent year-on-year,” added Destry.

He also emphasised the importance of synergy between authorities in strengthening the contribution of the national financial system to economic growth.

From BI’s side, the central bank has strengthened the Macroprudential Liquidity Incentive Policy (KLM) which is performance-based and forward-looking to ensure liquidity adequacy and accelerate credit distribution to government priority sectors.

By the first week of February 2026, banks had received incentives totalling Rp427.5 trillion.

Destry also emphasised the need for inter-agency synergy in promoting credit growth and accelerating the reduction of banking credit interest rates.

An accommodative macroprudential policy mix, including strengthening of the forward-looking KLM, is aimed at providing liquidity adequacy and accelerating credit distribution to priority sectors.

“Synergy with the Government and relevant authorities within the KSSK framework is key to building optimism and confidence that Indonesia’s economy can achieve higher growth while maintaining stability of the financial system,” he said.