Behind the Surge in Investment Credit, Corporations Are Actually Holding Back on Expansion
Jakarta, CNBC Indonesia - The latest data from the Financial Services Authority (OJK) records high growth in third-party funds (DPK) and bank credit throughout the first three months of this year, amid global economic turbulence and financial market volatility.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that in March 2026, total credit grew by 9.49% year-on-year (yoy) to Rp8,659.05 trillion. Looking closer, Investment Credit (KI) saw high growth of 20.85% annually or year-on-year (yoy) in March 2026, far surpassing the growth of other credit types.
This surge in investment credit signals that the business world remains aggressive in pursuing business expansions and new project developments.
Meanwhile, DPK grew 13.55% yoy to Rp10,230.81 trillion. However, when broken down, the growth was dominated by current accounts, at 21.37%.
The growth in current accounts, which are low-cost (current account) and highly liquid funds, is often associated with a cautious attitude among entrepreneurs. Placing funds in current accounts indicates that business owners prioritise security over expansion involving investment risks or new credit.
Bankers reveal that in reality, corporations are adopting a cautious and selective stance.
CIMB Niaga President Director (BNGA), Lani Darmawan, said that credit demand is actually still sluggish, including corporate credit. He noted that corporate credit at the second-largest private bank only reached 4.5% annually or year-on-year (yoy) throughout the first quarter of 2026.
“The reality in the market right now is that loan demand is still weak, including from corporations, so corporate funds are still available in the market, as seen from the strong growth in current accounts while loan growth is relatively lower,” Lani said when contacted by CNBC Indonesia on Thursday (7/5/2026).
“So, the enthusiasm for investment through credit is still relatively low,” he added.
On the other hand, Lani said CIMB Niaga remains consistent in prudently disbursing credit and maintaining asset quality. Currently, the bank’s non-performing loan (NPL) ratio stands at 1.89%, below the industry average.
The bank owned by a South Korean financial company, OK Bank (DNAR), is experiencing a relatively similar situation to the industry, with a decline in investment credit growth and an increase in corporate DPK.
OK Bank’s Compliance Director, Efdinal Alamsyah, assessed that this condition may be occurring because corporations tend to maintain liquidity and adopt a more selective approach to expansion. Nevertheless, the rise in KI is viewed as a form of confidence in prospective medium- to long-term expansions.
“However, the relatively good growth in investment credit shows there is still confidence in medium- to long-term prospects, especially for projects or sectors with strong visibility and cash flow,” Efdinal said when contacted by CNBC Indonesia on Thursday (7/5/2026).
Another bank owned by a South Korean financial giant, KB Bank (BBKP), explained that its financing portfolio is still dominated by the wholesale segment with short- to medium-term financing characteristics. Thus, credit growth tends to follow customers’ operational needs and business activities.
KB Bank President Director, Kunardy Darma Lie, stated that the moderate growth in Working Capital Credit (KMK) indicates an adjustment in the pace of financing expansion amid dynamic market conditions.
“Corporations are currently more selective in conducting operational activities and managing short-term financing needs to maintain cash flow quality and business sustainability,” Kunardy explained when contacted by CNBC Indonesia on Thursday (7/5/2026).
He said the situation differs from investment credit, which by nature has a medium- to long-term tenor. Therefore, Kunardy noted, investment credit growth still reflects business actors’ optimism towards opportunities and strategic projects with strong fundamentals, manageable risk profiles, and positive medium- to long-term growth prospects.
On the funding side, KB Bank continues to optimise its low-cost fund structure (CASA), in line with the industry trend of increasing current account funds. Kunardy acknowledged that the significant rise in current accounts may reflect a wait-and-see attitude from the corporate sector in maintaining liquidity, cash buffers, and operational flexibility amid global and domestic economic dynamics.
“This condition aligns with business actors’ tendency to delay short-term expansions while monitoring developments in interest rates, exchange rate movements, and market demand prospects,” he concluded.