Indonesia Loan Growth Picks Up in March

2026-04-22 08:10 By Czyrill Jean Coloma 1 min. read

Indonesia's annual loan growth rose by 9.49% year-on-year in March 2026, picking up from a three-month low of 9.37% in the previous month.

The uptick was primarily driven by strong growth in investment lending (20.85%), working capital loans (4.38%), and consumer credit (5.88%).

From the demand side, banks are still holding a sizable pool of undisbursed loan facilities totaling Rp2,527.46 trillion, equivalent to 22.59% of the total available credit ceiling.

On the supply side, the ratio of liquid assets to deposits stood at 27.85% in March, while third-party funds (TPF) grew robustly by 13.55% year-on-year.

Looking ahead, Bank Indonesia expects credit growth to remain within a stable range of 8–12% in 2026, supported by both demand and supply dynamics.

The central bank also signaled plans to further strengthen banks’ funding capacity, including through the development of non-traditional funding instruments beyond conventional deposits, in a bid to sustain lending momentum.



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Indonesia Loan Growth Picks Up in March
Indonesia's annual loan growth rose by 9.49% year-on-year in March 2026, picking up from a three-month low of 9.37% in the previous month. The uptick was primarily driven by strong growth in investment lending (20.85%), working capital loans (4.38%), and consumer credit (5.88%). From the demand side, banks are still holding a sizable pool of undisbursed loan facilities totaling Rp2,527.46 trillion, equivalent to 22.59% of the total available credit ceiling. On the supply side, the ratio of liquid assets to deposits stood at 27.85% in March, while third-party funds (TPF) grew robustly by 13.55% year-on-year. Looking ahead, Bank Indonesia expects credit growth to remain within a stable range of 8–12% in 2026, supported by both demand and supply dynamics. The central bank also signaled plans to further strengthen banks’ funding capacity, including through the development of non-traditional funding instruments beyond conventional deposits, in a bid to sustain lending momentum.
2026-04-22
Indonesia Loan Growth Eases to 3-Month Low
Indonesia’s annual loan growth eased slightly to 9.37% year-on-year in February 2026 from 9.96% in the previous month, marking the slowest pace since November 2025. The slowdown reflects weaker purchasing power, a contracting middle class, and increased caution among banks in extending credit. However, growth was supported by an increase in investment credit, which grew 20.72% from a year earlier, alongside gains in working capital loans (3.88%) and consumer credit (6.34%). Looking ahead, Bank Indonesia forecasts overall credit growth in 2026 to remain stable in the 8–12% range, driven by both supply and demand factors.
2026-03-17
Indonesia Loan Growth Hits Near 1-Year High
Indonesia’s annual loan growth rose by 9.96% year-on-year in January 2026, accelerating from 9.69% in the previous month. It marked the fastest pace of growth since February 2025, primarily driven by investment credit, which surged 22.38% from a year earlier, alongside increases in working capital loans (4.13%) and consumer credit (6.58%). The growth was also supported by stronger economic activity, the easing of monetary and macroprudential policies, and progress in the government’s priority programs. Looking ahead, Bank Indonesia said credit growth remains solid, underpinned by demand and supply factors. The central bank forecasts credit growth in the range of 8% to 12% in 2026. Nevertheless, BI is committed to strengthening coordination with the government and the Financial System Stability Committee (KSSK) to improve interest rate transmission and further support bank lending.
2026-02-19