BI Survey: Credit Growth Continues, but Banks Begin to Tighten Lending

JAKARTA — New bank credit disbursements continued to grow in the first quarter of 2026. However, amid this growth, banks are indicating a more cautious stance in providing financing, reflecting new dynamics in banking intermediation. Bank Indonesia’s Banking Survey shows that new credit disbursements in the first quarter of 2026 recorded a Weighted Net Balance (SBT) of 38.74%. Although still in the expansion zone, this figure is down from the fourth quarter of 2025, which reached 88.92%. New credit growth in the first quarter of 2026 was mainly supported by consumer credit, which recorded an SBT of 51.97%. Meanwhile, investment credit (KI) grew with an SBT of 37.33%, and working capital credit (KMK) at 36.40%, though both were lower than the previous period. In consumer credit, the increase was mainly driven by multi-purpose credit with an SBT of 51.90%, followed by unsecured credit (KTA) at 37.23%, and motor vehicle credit at 13.38%. By sector, new credit disbursements increased in the real estate sector, rental business, and corporate services with an SBT of 56.70%. The education services sector also grew with an SBT of 42.62%. On the other hand, several sectors experienced a slowdown in new credit disbursements, such as the financial intermediation sector with an SBT of 52.32%, processing industry at 50.31%, and wholesale and retail trade, which fell to 19.42%. Amid the still-growing credit, the survey results show that credit disbursement standards are more cautious compared to the previous quarter. In the survey methodology, a positive ILS value indicates a tendency for tighter credit standards, while a negative ILS reflects easing. BI notes that this caution is particularly evident in investment credit, while working capital credit and consumer credit still show a tendency towards easing.