Undisbursed Loans Rise to Rp2,506 Trillion in January 2026 as Thomas Djiwandono Addresses Banking Liquidity

Bank Indonesia (BI) recorded that the volume of undisbursed loans in the banking sector reached Rp2,506.47 trillion as of January 2026. This figure rose from Rp2,439 trillion in the preceding month, representing 22.65 per cent of the total available credit ceiling.

Despite the increase in idle credit facilities, overall banking credit grew by 9.96 per cent year-on-year in January 2026. The high level of undisbursed loans is seen as reflecting weak demand from businesses and households rather than a shortage of available funds, amid uncertainty over future economic prospects.

BI Deputy Governor Thomas Djiwandono assured that the liquidity resilience and capital adequacy of the national banking industry remain in strong condition. He stated that the central bank has conducted liquidity stress tests to measure banks’ capacity to withstand various pressure scenarios.

Banking liquidity indicators remain comfortable, with the Liquid Assets to Third-Party Funds (AL/DPK) ratio standing at 27.54 per cent. Third-party fund growth was robust at 13.48 per cent year-on-year in January 2026.

The figures come as BI continues its efforts to stimulate credit distribution following five consecutive interest rate cuts. The central bank strengthened its Macroprudential Liquidity Incentive Policy (KLM) from 16 December 2025, directing incentives towards lending in priority sectors. In the first week of February 2026, banks received Rp427.5 trillion in KLM incentives.

Bank Indonesia projected credit growth for 2026 in the range of 8 to 12 per cent, maintaining an optimistic outlook despite the persistently high level of undisbursed loans in the system.