BI Survey: New Credit Growth in Q1 2026 Slows

The latest Bank Indonesia (BI) banking survey reveals that new credit disbursements in the first quarter of 2026 remained positive but slowed compared to the previous quarter. According to BI, this aligns with historical patterns. This is reflected in the Weighted Net Balance (WNB) for new credit disbursements, which stood at 38.74 percent in Q1 2026. “The credit growth was mainly driven by consumer credit,” as quoted from BI’s official statement on Wednesday, 23 April 2026. The Weighted Net Balance is an indicator measuring new credit growth. Based on BI data, the WNB for consumer credit was recorded at 13.39 percent in Q4 2025, then rose to 51.97 percent in the first quarter of this year. The increase in consumer credit stems from higher demand for multi-purpose loans, unsecured loans, and motor vehicle loans. Meanwhile, credit card and home ownership or apartment ownership credit slowed. In contrast, investment and working capital credit growth decelerated. The WNB indicator for investment credit was 87.32 percent in the previous quarter, then dropped to 37.33 percent in Q1 this year. The WNB for working capital credit fell from 88.64 percent to 36.40 percent in the early quarter of 2026. Besides new credit disbursements, the BI survey also reveals that banking credit standards in Q1 2026 were more cautious compared to Q4 2025, as indicated by a positive Lending Standards Index (LSI) of 0.15. This more cautious credit policy, among other aspects, pertains to credit tenor and administrative requirements. “Subsequently, in Q2 2026, credit standards are projected to be looser, with an LSI of negative 2.88.” Respondents predict that outstanding credit will continue to grow until the end of 2026. According to BI, this is supported by positive prospects for economic and monetary conditions, as well as managed risks in credit disbursements. On a quarterly basis, new credit disbursements in the next quarter are expected to increase compared to this quarter. This is indicated by the projected WNB for new credit disbursements in Q2 2026 at 96.65 percent, up from 38.74 percent.