Indonesia's Undisbursed Loans Reach Rp2,527 Trillion: What Does the Concentration in Large Banks Signify?

The amount of approved financing capacity within the banking sector that has not yet been disbursed to businesses (undisbursed loans) reached Rp2,527 trillion as of March 2026. This condition serves as a signal that some business actors are still withholding their expansion efforts.

The Vice Chairman of the National Banking Association (Perbanas), Nixon Napitupulu, stated that the value of undisbursed loans in the banking sector experienced a year-on-year increase of 7.35% in March 2026. According to him, there are various reasons why approved credit facilities have not yet been withdrawn by customers.

“There are several factors discussed by individual customers; many commitments have been opened but not yet disbursed, as some do not yet have the need and others are still delaying,” Nixon said during a hearing with Commission XI of the Indonesian House of Representatives (DPR RI) on Tuesday, 2 June 2026.

He revealed that the largest growth in undisbursed loans occurred within the large bank groups. Meanwhile, the KBMI 1 and KBMI 2 bank segments experienced the most significant decrease in undisbursed loan values.

Specifically, undisbursed loans in the KBMI 3 bank group grew by 12.5%, and KBMI 4 increased by 12.24% year-on-year. The growth of these two groups sits above the industry average, which was recorded at 7.35%.