OJK on High Undisbursed Loans in Banking
The Financial Services Authority (OJK) recorded that undisbursed loans in banks remained high, reaching Rp 2,575 trillion as of May 2026. Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, stated that the relatively high figure of undisbursed loans indicates potential for business expansion. The utilisation of these unallocated credits is believed to boost future credit growth. “This shows the potential for utilising business expansion according to the timeline owned, thereby potentially increasing credit growth in the future,” said Dian in a written response for the Monthly Board of Commissioners Meeting, quoted on Thursday, 23 July 2026.
Undisbursed loans are credit facilities that have been approved by banks but have not yet been drawn down by debtors. Based on the bank group type, the undisbursed loan position up to May 2026 was recorded at Rp 545 trillion in state-owned banks (Himbara), while national private banks recorded Rp 1,664 trillion. Dian stated that these values are in the form of both committed and uncommitted loans. The largest portion of undisbursed loans originates from working capital loans, at 54.33 per cent. “This indicates that these credit facilities are mostly prepared to support the productive activities of the business world,” he said.
The gradual realisation of credit drawdowns also reflects the cautious attitude of business actors in managing their funding needs amidst economic dynamics. He stated that the trend of economic growth and the maintained level of business confidence, along with positive and stable market conditions, means credit growth is projected to continue increasing to drive growth in the real sector. The latest report from Bank Indonesia recorded that as of June 2026, the undisbursed loan figure reached Rp 2,490 trillion, or 21.52 per cent of the available credit ceiling. According to BI, the large amount of unused loan facilities supports the prospect of credit growth. The central bank estimates credit growth in 2026 will be in the range of 8 to 12 per cent.