Bank Lending Grows 9.49% in March, BI: Risks in Consumption and MSME Segments Surge

Jakarta, VIVA – Bank Indonesia Governor Perry Warjiyo reported that bank lending in March 2026 grew by 9.49% year-on-year (yoy), higher than the 9.37% yoy recorded in February 2026.

Based on usage categories, Perry continued in Jakarta on Wednesday, this growth was supported by investment credit, working capital credit, and consumer credit, which grew by 20.85% yoy, 4.38% yoy, and 5.88% yoy respectively in March 2026.

He acknowledged that interest in bank credit disbursement remains strong, except in the consumption and Micro, Small, and Medium Enterprises (MSME) segments.

“Interest in bank credit disbursement remains strong, as reflected in the still lenient lending requirements, except in the consumer credit and MSME segments due to the still high credit risks in both segments,” Perry said, quoted on Thursday, 23 April 2026.

He stated that bank credit growth continues to be strengthened to support economic growth. BI projects that credit growth in 2026 will remain stable in the range of 8-12%, influenced by both demand and supply sides.

From the demand side, the utilisation of bank financing is said to still be able to be increased, primarily by optimising undisbursed loan facilities that are still substantial, reaching Rp 2,527.46 trillion or 22.59% of the available credit ceiling.

From the supply side, bank financing capacity remains adequate, supported by a Loan to Third-Party Funds Ratio (LDR) of 27.85% and third-party funds (DPK) that continue to grow strongly at 13.55% yoy in March 2026.

Looking ahead, Perry assured that BI will continue to strengthen bank funding capacity, including the development of non-traditional funding instruments (non-DPK) to support bank credit disbursement.

“Coordination with the government and the Financial System Stability Committee (KSSK) continues to be strengthened to improve the interest rate structure and encourage bank credit/financing growth,” he said. (Ant).