Banking Credit Growth Remains in Single Digits, This is Bank Indonesia's Stance
Bank Indonesia (BI) has provided an update on banking credit growth, which remains in single digits. BI continues to encourage stronger credit growth in the banking sector to support economic expansion.
“Banking credit grew by 9.49% (year-on-year/yoy) in March 2026, higher than the previous month’s growth of 9.37% (yoy),” said BI Governor Perry Warjiyo during the April 2026 Board of Governors Meeting press conference held online on Wednesday (22/4/2026).
Perry explained that this development, based on usage categories, 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.
“Bank Indonesia projects credit growth for 2026 to remain stable in the range of 8-12%, influenced by both demand and supply sides,” he stated.
On the demand side, Perry noted that the utilisation of bank financing can still be improved, particularly by optimising undisbursed loans, which remain substantial. BI records undisbursed loans at Rp 2,527.46 trillion, or 22.59% of the available credit ceiling.
On the supply side, bank financing capacity remains adequate, supported by a Liquidity to Third-Party Funds Ratio (AL/DPK) of 27.85% and third-party funds (DPK) growth of 13.55% (yoy) in March 2026.
“Additionally, interest in extending bank credit remains positive, as reflected in the still lenient lending requirements, except in the consumer credit and MSME segments due to the persistently high credit risk in those areas,” he said.
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 extension. Coordination with the Government and the Financial System Stability Committee (KSSK) will also be enhanced to improve interest rate structures and encourage credit or bank financing growth.
Banking Resilience
Despite banking credit growth remaining stagnant below 10%, Perry stated that banking resilience remains strong to mitigate risks from the Middle East conflict. This is indicated by adequate bank liquidity, well-maintained high capital capacity, and low credit risk.
The Capital Adequacy Ratio (CAR) for banks in February 2026 was recorded at a high 25.83%. This figure is considered strong in absorbing risks and supporting credit growth.
Meanwhile, the aggregate non-performing loan (NPL) ratio for banks remains low at 2.17% (gross) and 0.83% (net) in February 2026.
“Bank Indonesia’s stress test results show that banking resilience remains strong in facing various risks, including spillover effects from global turmoil due to the Middle East war, supported by maintained corporate payment ability and profitability,” Perry said.