Industrial Credit Growth Driven by State-Owned Banks

The Financial Services Authority (OJK) has noted that credit growth as of April 2026 was supported by the performance of state-owned enterprises. The growth in credit distribution by state-owned banks was significantly higher than the industry average.

Executive Head of Banking Supervision, Dian Ediana Rae, explained that credit from state-owned banks rose by 14.35% year-on-year, while the overall industry grew by 9.98% year-on-year. Overall, the banking industry’s intermediation performance is considered positive, with a well-maintained risk profile, she stated during a press conference for the May 2026 Monthly Board of Commissioners Meeting on Friday (5/6/2026).

In total, industry-wide credit distribution reached Rp 8,755 trillion. Based on usage type, investment credit rose by 19.48% year-on-year, consumption credit by 6.13%, and working capital by 6.04%.

During the same period, third-party funds (DPK) grew by 11.4% year-on-year to Rp 10,077 trillion, despite a monthly decrease of 1.51%. Alongside the growth rate of third-party funds, Dian stated that banking liquidity remains adequate. This is reflected in the ratio of liquid assets to non-core deposits (AL/NCD) at 111.13% and the ratio of liquid assets to third-party funds (AL/DPK) at 25.39%, both of which remain above the required threshold.

Meanwhile, credit quality remains stable. The gross non-performing loan (NPL) ratio stands at 2.17%, with the net NPL ratio at 0.84%, representing a slight monthly increase.

Dian also revealed that the capital adequacy ratio (CAR) of banks decreased in April following dividend distributions. The CAR stood at 23.97%, down both monthly and annually; for reference, the CAR was 25.09% in March 2026 and 25.41% in April 2025. Nevertheless, Dian ensured that the capital adequacy ratio remains highly sufficient to serve as a buffer to protect customer funds against potential financial losses arising from credit or operational risks.