This List of Business Sectors Still Needs Bank Lending

Jakarta, CNBC Indonesia - Bank Indonesia (BI) has identified a number of business sectors that still require bank lending, because they have substantial growth room. Senior Deputy Governor Destry Damayanti said the list of sectors was derived from assessments of the credit gap, i.e., the difference between credit extended by banks to those sectors and their growth potential. ‘So we also carry out assessments; we look at various sectors, we look at the credit gap,’ Destry said at a press conference on Wednesday, 20 May 2026.

Destry said the first sector is agriculture. He noted that although its contribution to Indonesia’s gross domestic product (GDP) is 12.67%, its growth was only 4.97% in Q1-2026. ‘So that means it still has room to receive credit injections from banks,’ he said.

The second sector is trade. Destry said that the sector has thus far not received optimal credit from banks, because its share of GDP is 13.28% with growth of 6.26%. ‘Trade, if we look at it, household consumption in our GDP yesterday grew at above 5%,’ he said. ‘But credit extended to the trade sector is still relatively low, at about 3.9%. So we see several sectors with negative credit gaps,’ he emphasised.

With these notes, Destry stressed BI’s push for banks to accelerate lending to sectors with high credit gaps. ‘This is what we want banks to do, to channel credit to those sectors. Moreover, those sectors have a multiplier impact on the economy and job creation that is very large,’ he added.

BI has actually already implemented the Macroprudential Liquidity Policy (KLM) incentive to encourage banks to channel credit to sectors included in the priority sectors. These include Agriculture, Industry and the downstream, Services including the Creative Economy, Construction, Real Estate and Housing, and the Small and Medium Enterprises (SMEs), Cooperatives, Inclusion, and Sustainable sectors.

By the first week of May 2026, the KLM incentives received by banks totalled Rp 424.7 trillion, with Rp 361.0 trillion allocated to the lending channel and Rp 63.7 trillion to the interest rate channel.

Disaggregated by bank groups, KLM was channelled to state-owned banks (BUMN) Rp 214.2 trillion, BUSN Rp 171.1 trillion, BPD Rp 30.6 trillion, and KCBA Rp 8.2 trillion.

In terms of bank credit performance, April 2026 still saw year-on-year growth of 9.98%, higher than March 2026’s 9.49%. Based on use, growth was supported by investment credit, working capital credit, and consumer credit, which in April 2026 grew by 19.48% y/y, 6.04% y/y, and 6.13% y/y respectively.

Bank Indonesia also expects credit growth in 2026 to stay in the 8-12% range. This outlook is supported by the still-large undisbursed loan facilities totalling Rp 2,551.42 trillion, or 22.57% of the available lending ceiling. Moreover, the capacity of banks to fund is still reflected by the Liquidity to Third-Party Funds (AL/DPK) ratio of 25.39% and DPK growing strongly at 11.39% y/y in April 2026. Interest rate efficiency can also be improved, as in April 2026 the lending rate stood at 8.73% and the one-month deposit rate at 4.16%.