Banking Liquidity Remains Tight, Credit Growth Remains Uneven
Jakarta, CNBC Indonesia - Economists are highlighting that banking liquidity remains one of the primary challenges amidst ongoing credit growth. Although credit distribution in the banking industry has achieved double-digit growth, this expansion is considered uneven as it continues to be strongly supported by the corporate segment.
Diah Ayu Yustina, Head of Macroeconomics and Financial Market Research at Bank Mandiri, stated that the overall performance of the banking industry still demonstrates strong resilience. Based on the latest data from July 2026, banking credit growth was recorded at 13.58% year-on-year (yoy), an increase from the 12.7% growth recorded in the previous month.
On the other hand, the growth of third-party funds (DPK) remains more moderate. Data up to June 20lag shows that DPK grew by 10.2% annually. This condition is reflected in the loan-to-deposit ratio (LDR), which stands at approximately 88%, indicating that banking liquidity remains relatively tight.
“Liquidity is certainly still a major issue, as we know the LDR ratio has been increasing over the last few months,” Diah said during the Mandiri Macro and Market Brief Q3 2026, held virtually on Thursday (3/9/2026).
Regarding fund collection, the growth of deposits has also not occurred uniformly. According to data from the Indonesia Deposit Insurance Corporation (LPS), high deposit growth primarily originates from the group of deposits with nominal values exceeding Rp5 billion. Meanwhile, deposit growth in other nominal groups remains relatively flat or shows a tendency to slow down.
Disparity is also evident in credit growth across segments. Diah noted that credit growth is still dominated by the corporate segment, which has grown significantly by approximately 20%. Conversely, credit growth in the consumer and Micro, Small, and Medium Enterprise (MSME) segments has relatively slowed down.
“If we look at credit growth, the segmentation remains the same; it is still dominated by corporate credit growth, which is quite significant at around 20%. Meanwhile, credit growth in the consumer and MSME segments has relatively slowed,” said Diah.
In terms of asset quality, the highest non-performing loans (NPL) are still recorded in the MSME and retail segments. Nevertheless, Bank Mandiri observes signs of asset quality stabilisation in recent months. This condition is expected to align with the improving domestic demand, allowing future credit growth to become more balanced.
“If we look at the movement over the last few months, there has been some stabilisation. Therefore, we hope that the economic conditions regarding domestic demand show signs of improvement so that credit growth can become more even,” she added.
Diah acknowledged that banking liquidity throughout the first half of 2026 faced several challenges, including external factors. In May and June, for instance, Indonesia’s trade performance recorded a deficit. This situation was further exacerbated by capital outflows.
In addition to external factors, the implementation of monetary and fiscal policies has also impacted domestic liquidity conditions. Nonetheless, Bank Mandiri projects that liquidity conditions will gradually improve in the future.
This improvement is expected to occur gradually, particularly with the support of government policies from both fiscal and monetary perspectives. “We project that the situation will begin gradually, with improvements specifically in banking liquidity,” said Diah.
According to her, such policy support is expected to strengthen banking liquidity and ultimately drive credit growth to become better and more evenly distributed across various segments.