Government Records 10.42 Percent Credit Growth in First Quarter of 2026
The increase in credit debit balances and the number of credit recipients reflects that the banking intermediation function continues to operate optimally in supporting economic activities and expanding financing access to the public.
Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has recorded national credit growth reaching 10.42 percent year-on-year (yoy) in the first quarter of 2026.
From a structural perspective, credit growth is supported by strong performance in the corporate, commercial, and consumer segments. Corporate credit grew the highest at 14.29 percent, followed by consumer credit at 13.97 percent and commercial credit at 11.11 percent. Meanwhile, SME credit experienced a limited contraction of 3.57 percent.
“The increase in credit debit balances and the number of credit recipients reflects that the banking intermediation function continues to operate optimally in supporting economic activities and expanding financing access to the public,” said Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, in his statement in Jakarta on Monday.
The government assesses that the SME credit contraction remains controlled and is part of the consolidation process towards a healthier and more sustainable financing structure.
Amid pressures on the micro sector, the strengthening of People’s Business Credit (KUR) has become the main instrument to maintain financing access.
In the first quarter of 2026, KUR continues to show stable performance with positive growth of 0.21 percent (yoy) and a debit balance reaching Rp522 trillion. This stability reaffirms KUR’s role as an anchor for SME financing amid economic dynamics.
In addition, the implementation of the Housing Programme Credit (KPP), which began in October 2025, also shows good progress with a debit balance reaching Rp15.76 trillion as of 31 March 2026.
Overall, government programme credits consisting of KUR, KPP, Agricultural Machinery Business Credit, and Labour-Intensive Industry Credit grew by 3.23 percent (yoy).
This growth demonstrates the government’s strong commitment to maintaining the continuity of financing for the real sector.
From a risk perspective, the government is monitoring a trend of increasing non-performing loan ratios in the SME segment, with the SME credit NPL ratio reaching 4.55 percent in March 2026.
However, the quality of KUR financing remains well maintained, as reflected in the relatively low KUR NPL rate of 2.16 percent in January 2026.
“This shows that the KUR policy design, supported by a strong guarantee/insurance system, is able to maintain a balance between expanding financing access and prudent risk management,” Haryo explained.
The finding that guarantees/insurance serve as a solution in SME financing has been concretely implemented in KUR and KPP policies.
The performance of guarantees/insurance in the KUR programme also shows a solid and sustainable condition.
With a high coverage capacity of guarantees/insurance, reaching 70 percent of the KUR portfolio, credit guarantee and insurance institutions continue to record good performance.
Various guarantee/insurance risk indicators are in a controlled condition, with a claims ratio of 62.8 percent, non-performing guarantee (NPG) of 2.8 percent, and a recovery rate of 27.8 percent.
The strong guarantee/insurance scheme has proven able to maintain credit quality while encouraging sustainable SME financing expansion.
As a form of strengthening adaptive and targeted policy responses, the government has also implemented post-disaster KUR policies as regulated in Ministerial Regulation Number 2 of 2026 by the Coordinating Minister for Economic Affairs.
This policy is designed to provide protection as well as acceleration of recovery for SME debtors affected by disasters in Aceh Province, North Sumatra, and West Sumatra.
Through this policy, the government provides comprehensive relief for existing KUR debtors, including extension of tenor, provision of grace periods, and additional interest subsidies so that the effective interest rate becomes zero percent in 2026 and three percent in 2027.
On the other hand, to encourage accelerated economic recovery, the government also provides ease of access to new financing for debtors through relaxation of disbursement requirements, including credit history aspects and other administrative requirements.
The implementation of this policy shows positive results, with KUR disbursement in Aceh Province, North Sumatra, and West Sumatra reaching Rp6.04 trillion to more than 93,000 debtors.
Haryo explained that this achievement shows performance that remains stable compared to before the disaster conditions in the same period the previous year.
The post-disaster KUR policy reflects the strategic role of KUR not only as a financing instrument but also as an instrument for stabilisation and economic recovery for the community amid disruption conditions.
Looking ahead, to encourage economic growth in 2027 from the expenditure side, the government continues to strengthen synergies between SME financing policies through KUR with APBN priority programmes and policies to maintain people’s purchasing power.
KUR is directed to support productive and labour-intensive sectors, including strategic programmes such as Free Nutritious Meals (MBG), the Three Million Houses Programme, as well as creating new entrepreneurs and jobs.
This strengthening of KUR is combined with acceleration of government spending to create a multiplier effect on consumption and investment.
On the other hand, the government continues to maintain consumption stability through various social protection programmes and fiscal stimuli. This policy synergy ensures that increased financing access goes hand in hand with maintaining people’s purchasing power, thereby encouraging sustainable domestic demand.
Through an integrated policy approach, Haryo continued, the government reaffirms its commitment not only to expanding financing access but also to improving the quality, productivity, and sustainability of SME businesses.