New Lending Surges in Q2, Working Capital Loans the Main Driver
Bank Indonesia (BI) recorded a surge in new bank lending in the second quarter of 2026. However, amid the strong demand for financing, banks appeared to be more cautious in extending loans to customers. This was reflected in the results of the Bank Indonesia Banking Survey released on Monday (20/7/2026). BI reported that new loan growth in the second quarter of 2026 increased significantly compared to the previous quarter.
“The increase is reflected in the Weighted Net Balance (WNB) of new loans of 93.08%, higher than the 38.74% recorded in the previous quarter,” BI wrote in its report. The increase in lending occurred across all financing segments. Working Capital Loans, Investment Loans, and Consumer Loans all recorded increases compared to the January-March 2026 period. This condition indicates sustained economic activity and high financing needs from both the business sector and households amid global uncertainty.
BI estimates that this positive trend will continue into the third quarter of 2026. This is reflected in the projected WNB for new loans, which remains high at 84.65%. In more detail, the WNB for Working Capital Loans grew by 94.34%, Investment Loans by 93.51%, and Consumer Loans by 83.67%, all higher than the previous quarter. The increase in Consumer Loans was driven by higher demand for Home Ownership Loans (KPR)/Apartment Ownership Loans (KPA), motor vehicle loans, multipurpose loans, and unsecured loans, while demand for credit cards slowed.
Sectorally, BI noted that new loan disbursement in the second quarter of 2026 increased in several sectors, with the highest WNB recorded in the Transportation, Warehousing, and Communications sector, followed by Education Services, Processing Industry, Construction, and Health Services and Social Activities sectors.
Despite the rapid credit growth, the survey showed that banks tightened lending standards in the second quarter of 2026. This was reflected in the Lending Standard Index, which stood at a positive 1.03, indicating stricter standards. BI explained that caution was exercised in aspects such as interest rate setting, loan ceiling, loan agreement terms, tenor, and approval fees. This conservative stance reflects efforts to maintain credit quality amid challenging global and domestic economic dynamics.
Despite being more selective, the banking industry’s optimism regarding credit prospects remains high. Survey respondents predicted that loan growth would continue until the end of 2026, supported by conducive economic and monetary conditions and maintained credit risk. Interestingly, banks are expected to ease lending standards in the third quarter of 2026, with the projected Lending Standard Index at a negative 2.25, indicating that banks will be more aggressive in extending credit to capture open economic growth opportunities.