Bank Lending Grows 11.51% in May 2026, BI Optimistic Target Will Be Met

Bank Indonesia (BI) reported that national bank lending continues to show a positive trend. As of May 2026, bank credit grew by 11.51 percent year-on-year (yoy), a significant increase compared to the April 2026 figure of 9.98 percent (yoy). Bank Indonesia Governor Perry Warjiyo stated that this growth acceleration was driven by strong performance across all credit usage groups. Investment credit was the main driver, with growth reaching 21.95 percent (yoy). “Based on usage groups, this development was supported by investment credit, working capital credit, and consumer credit, which in May 2026 grew by 21.95 percent (yoy), 8.09 percent (yoy), and 5.89 percent (yoy) respectively,” Perry said during a press conference following the BI Board of Governors Meeting in Jakarta on Thursday (18/6). Observing this positive trend, Bank Indonesia is optimistic that credit growth throughout 2026 will remain within the 8 to 12 percent range. Perry explained that this outlook is supported by the availability of undisbursed loan facilities, which remain very large. Undisbursed loans reached Rp2,576 trillion, equivalent to 22.41 percent of the total available credit ceiling. In addition, the banking sector’s financing capacity is considered more than adequate to support national economic activity. Amid geopolitical uncertainty due to the conflict in the Middle East, BI assured that the national banking sector remains robust. Perry emphasised that adequate liquidity and strong capitalisation are the main bulwarks in mitigating the risks of external impacts. Data up to April 2026 showed the Capital Adequacy Ratio (CAR) at a high level of 23.97 percent. Meanwhile, credit risk remains under control, with a low aggregate Non-Performing Loan (NPL) ratio of 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 spillover effects of the war in the Middle East, supported by well-maintained corporate repayment capacity and profitability,” he added. To maintain financial system stability going forward, Bank Indonesia is committed to continuing to strengthen macroprudential policy and enhancing synergy with the Financial System Stability Committee (KSSK).