Banking Sector's Favourite Business Sectors
The direction of Indonesian banking credit provides clues about the most promising business sectors, at least from the financial industry’s perspective. Banks are not only channelling credit to sectors with substantial cost needs but also to those with good prospects and low-risk quality, capable of generating strong profit flows. Therefore, examining credit growth by business sector is important. Sectors with the highest credit growth often tell a different story, revealing which sectors are ‘on the rise’, gaining the trust of banks, or receiving new impetus—perhaps due to policy changes or economic needs.
Financial Services Authority (OJK) data shows that general bank credit has continued to increase over the past three years. Outstanding general bank credit as of April 2026 reached Rp8,755 trillion, with credit to economic sectors recorded at Rp6,454 trillion and non-economic sector credit (household consumption) at Rp2,301 trillion. This increase indicates that the banking intermediation function continues to operate, albeit at varying speeds across different types of use and business sectors.
Based on the highest credit growth as of April 2026, the favourite sectors for banks are construction (45.54%), electricity and gas procurement (23.27%), professional and corporate activities (15.15%), real estate (14.12%), and health and social activities (12.92%). These sectors reflect areas that banks are currently targeting, driven by strong financing demand, improving business prospects, government project support, changes in industrial structure, or low-risk perceptions.
The development of bank credit to non-bank third parties over the past decade shows a clear cyclical shift from consumption to business sectors. Before the Covid-19 pandemic, bank credit grew relatively strongly, rising from Rp4,738 trillion at the end of 2017 to Rp5,617 trillion at the end of 2019. A major shock occurred in 2020 when the pandemic weakened credit demand and made banks more cautious, causing total credit to fall to Rp5,482 trillion with a contraction of 2.41%. A more solid recovery began in 2022, with total credit rising to Rp6,424 trillion (11.35% growth) and further to Rp7,090 trillion in 2023 (10.53% growth), as businesses needed financing again and banks became more expansive while maintaining prudential principles.
The 2024-2026 period shows a different phase where credit not only grows but also changes direction. Investment credit has become the most prominent component, growing 13.62% at the end of 2024, surging to 21.06% at the end of 2025, and remaining high at 19.48% in April 2026. In nominal terms, investment credit rose from Rp2,144 trillion in December 2024 to Rp2,642 trillion in December 2025, and reached Rp2,772 trillion in April 2026. This surge indicates that banks are increasingly active in financing business expansion, productive asset development, and medium-to-long-term projects. Meanwhile, working capital credit grew more moderately, with its nominal value remaining the largest at Rp3,682 trillion in April 2026, though growth slowed from 8.35% at the end of 2024 to 6.04% in April 2026. Consumer credit growth remained stable but weak, with outstanding credit increasing to Rp2,301 trillion in April 2026 but growth declining to 6.13%. Despite the rapid credit expansion, asset quality remains well-maintained, with the general bank non-performing loan (NPL) ratio at a low 2.17%. The energy sector recorded the lowest NPL at 0.22%, while the construction sector managed a credit surge alongside a decline in its NPL to 1.99%.