Bank Indonesia Notes High Level of Idle Credit in Banks, Reaching Rp 2,527 Trillion

Bank Indonesia (BI) has highlighted the persistently high value of ‘idle’ credit, or undisbursed loan facilities, in March 2026, even as credit growth surged during the same period.

BI Governor Perry Warjiyo stated that the undisbursed loan ratio remains elevated at 22.59% of the available credit ceiling, equivalent to Rp 2,527.46 trillion.

Compared to the previous month’s data, the undisbursed loan value in March 2026 saw a slight decline of around 0.35% from Rp 2,536.4 trillion, or 22.86% of the total credit ceiling.

On the other hand, credit growth for the same period reached 9.49% (year-on-year/yoy), surpassing February 2026’s 9.37% (yoy) and March 2025’s 9.16% (yoy).

This situation indicates that there is still considerable room for credit expansion, in line with the large portion of the credit ceiling that has yet to be utilised by debtors.

‘From the demand side, the utilisation of bank financing can still be improved, particularly by optimising the substantial undisbursed loans,’ he said during a press conference on Wednesday (22/4/2026).

Furthermore, Perry explained that from the supply side, the banking sector’s capacity to disburse credit remains highly adequate.

This is reflected in the high Loan-to-Deposit Ratio (LDR), wait no, the ratio of Liquid Assets to Third-Party Funds (AL/DPK) which remains high at 27.85%.

Additionally, third-party funds (DPK) also recorded solid growth of 13.55% (yoy) in March 2026.

Thus, the banking sector has sufficient liquidity room to continue driving credit expansion.

On the other hand, banks’ interest in disbursing credit remains steady.

This is reflected in the relatively loose credit disbursement standards.

However, this easing is not uniform across all segments.

Looking ahead, the central bank will continue to strengthen the banking sector’s funding capacity to support more optimal credit growth.

One measure being pursued is encouraging the development of non-traditional or non-DPK funding sources.

‘Coordination with the Government and the Financial System Stability Committee (KSSK) will continue to be strengthened to improve the interest rate structure and encourage bank credit/financing growth,’ he added.

With these various measures, BI is optimistic that bank credit growth throughout 2026 can remain stable within the 8-12% range, in line with efforts to maintain the momentum of national economic growth.