OJK: Undisbursed Loans in March Rise to Rp 2.527 Trillion

The Financial Services Authority (OJK) notes that the position of undisbursed bank loans remains high. Bank undisbursed loans in March 2026 were recorded at Rp 2,527.46 trillion, an increase of 7.35% compared to the same period last year, which stood at Rp 2,354.50 trillion. Undisbursed loans refer to loan facilities approved by banks but not yet drawn down by debtors. Causes include considerations of business cycles, project completion progress, and corporate cash flow management. The Executive Head of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that although the nominal value has increased, the percentage of undisbursed loans to total credit has decreased from 29.77% to 29.19%. “This indicates that national banking still has considerable room to support productive financing and drive real sector growth,” said Dian in an official statement on Friday, 8 May 2026. OJK predicts that the undisbursed loan figure will decline, in line with banking business strategy adjustments and rising business optimism regarding national economic prospects. “We are optimistic that the national banking industry remains strongly resilient in facing global and domestic dynamics,” she added. The high figure for undisbursed loans occurs amid efforts by Finance Minister Purbaya Yudhi Sadewa to encourage credit distribution through liquidity injections into banking. Since September 2025, Purbaya has placed Rp 200 trillion in funds with five state-owned bank members of the State-Owned Banks Association (Himbara). In March 2026, Purbaya added another Rp 100 trillion injection into banking. The General Chairman of the Indonesian Employers Association (Apindo), Shinta Kamdani, previously highlighted the high undisbursed loans, which reach about a quarter of total disbursed credit. “This condition shows that in terms of liquidity availability, there is still considerable room for credit distribution,” she said. However, the challenges faced are not only on the liquidity side but also on credit demand factors and business world risk perceptions. “In other words, additional liquidity does not necessarily automatically drive credit growth if business actors remain in a wait-and-see position or face uncertainty in business expansion,” Shinta stated.