Indonesian Banks Flooded with Investment Credit Requests
The national banking industry is beginning to be flooded with investment credit requests amid global economic turbulence and financial market pressures. The Financial Services Authority (OJK) recorded that investment credit grew sharply by 20.85% year-on-year (yoy) in March 2026, far exceeding the growth of other credit types.
In comparison, working capital credit (KMK) only grew by 4.38% yoy, while consumer credit (KK) grew by 5.88% yoy. This surge in investment credit signals that the business world remains aggressive in expanding operations and building new projects.
Overall, banking credit grew by 9.49% yoy to Rp8,659.05 trillion in March 2026, an increase from February 2026’s growth of 9.37%.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that credit growth remains resilient despite global market volatility due to surging energy prices and increasing financial market volatility.
“This generally shows that the increase in volatility in global markets remains a concern, but the Indonesian banking industry has strong capitalisation and adequate liquidity to absorb potential future pressures,” Dian said in an official statement, quoted on Wednesday (6/5/2026).
Based on economic sectors, the largest surge came from the construction sector, which grew very high at 46.67% yoy or an increase of Rp181.98 trillion. This was followed by the household sector, which grew by Rp103.83 trillion (5.56%), and the processing industry by Rp97.62 trillion (7.96%).
On the other hand, banking credit quality remains well-maintained. The gross non-performing loan (NPL) ratio was recorded to have decreased to 2.14% from the previous 2.17%. Meanwhile, the loan at risk (LAR) also improved to 8.94% from 9.24%.
Banking liquidity is still ample. Third-party funds (DPK) grew by 13.55% yoy to Rp10,230.81 trillion, higher than credit growth. Demand deposits even surged by 21.37% yoy, indicating that cheap funds are still flowing strongly into national banks.
With these conditions, the room for banking credit expansion is deemed still substantial going forward, particularly to support domestic investment and economic growth.
However, it should be noted that during the surge in investment credit, micro, small, and medium enterprise credit is still growing very thinly. Nevertheless, it has improved compared to the previous month, which experienced contraction.
In March 2026, MSME credit was recorded at Rp1,498.64 trillion, up 0.12% yoy with an NPL of 4.60%. In the previous month, MSME credit contracted by 0.56% yoy.
MSME credit growth is still hampered by the small credit segment at -0.49% yoy. Meanwhile, micro and medium credits rose by 0.2% yoy and 0.9% yoy, respectively.
According to Dian, banks and MSME players need to develop a business ecosystem capable of supporting optimal and sustainable credit utilisation in line with national economic growth.