Manufacturing Sector Credit Grows 16.85 Per Cent, Acting as Banking Pillar

Banking credit to the manufacturing sector grew by 1s6.85 per cent year-on-year in July 2026. The Financial Services Authority (OJK) noted that the manufacturing industry remains the most dominant economic sector in the distribution of bank credit.

OJK Executive Head of Banking Supervision, Dian Ediana Rae, stated that the banking industry remains optimistic about performance prospects and possesses confidence in managing risks.

“The results of the SBPO show that the banking industry is still optimistic about performance prospects and has confidence in managing risks,” Dian said in an official OJK statement on Thursday (10/9/2026).

This optimism is reflected in the results of the OJK Banking Business Orientation Survey (SBPO) for the third quarter of 2026. The Banking Business Orientation Index (IBP) was recorded at 56, placing it within the optimistic zone.

The survey involved 99 respondent banks in July 2026. This figure represents 97.91 per cent of the total assets of commercial banks based on June 2026 data.

In terms of performance, the Performance Expectation Index (IEK) was recorded at 83, also within the optimistic zone. Respondents expect credit to continue growing alongside increasing credit demand and credit expansion through available pipelines.

The growth of manufacturing sector credit serves as one of the indicators supporting this outlook. OJK noted that credit to the manufacturing sector grew by 16.85 per cent year-on-year in July 2026. Survey respondents also project that this sector will remain one of the drivers of credit growth in the future.

Meanwhile, from a risk perspective, the Risk Perception Index (IPR) stands at level 57, remaining in the optimistic zone. The majority of respondents believe that credit quality remains maintained. The Net Foreign Exchange Position (PDN) is also at a low level, while liquidity risk is deemed to be well-managed.