Indonesia Loan Growth Highest in Over 2 Years

2026-07-22 08:01 By Kyrie Dichosa 1 min. read

Indonesia's loan growth rose by 12.67% year-on-year in June 2026, accelerating from an 11.51% increase in the previous month and marking the strongest pace since April 2024.

The increase was driven by investment credit (24.90%), working capital credit (8.94%), and consumer credit (5.75%).

Banking resilience remained solid despite heightened global uncertainty, supported by strong capital buffers, low credit risk, and adequate liquidity.

Looking ahead, Bank Indonesia expects credit growth to remain within the 8%–12% range in 2026, backed by Rp2,490 trillion in undisbursed loan facilities, equivalent to 21.52% of total credit limits.

Lending prospects are also supported by steady third-party fund growth of 10.21% year-on-year and favorable interest rate conditions.

Meanwhile, the banking industry's liquid assets-to-deposits (AL/DPK) ratio stood at 23.08% in June, while the average lending rate was 8.81% and the one-month deposit rate was 4.76%.



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Indonesia Loan Growth Highest in Over 2 Years
Indonesia's loan growth rose by 12.67% year-on-year in June 2026, accelerating from an 11.51% increase in the previous month and marking the strongest pace since April 2024. The increase was driven by investment credit (24.90%), working capital credit (8.94%), and consumer credit (5.75%). Banking resilience remained solid despite heightened global uncertainty, supported by strong capital buffers, low credit risk, and adequate liquidity. Looking ahead, Bank Indonesia expects credit growth to remain within the 8%–12% range in 2026, backed by Rp2,490 trillion in undisbursed loan facilities, equivalent to 21.52% of total credit limits. Lending prospects are also supported by steady third-party fund growth of 10.21% year-on-year and favorable interest rate conditions. Meanwhile, the banking industry's liquid assets-to-deposits (AL/DPK) ratio stood at 23.08% in June, while the average lending rate was 8.81% and the one-month deposit rate was 4.76%.
2026-07-22
Indonesia Loan Growth Hits Near 2-Year High
Indonesia's loan growth rose by 11.51% year-on-year in May 2026, accelerating from 9.98% in the previous month. It marked the fastest annual growth since July 2024, primarily driven by investment credit (21.95%), working capital credit (8.09%), and consumer credit (5.89%). Banking resilience remained strong despite risks stemming from the Middle East conflict, supported by ample liquidity, solid capital buffers, and low credit risk. Looking ahead, Bank Indonesia expects credit growth to remain within the 8%–12% range in 2026, backed by Rp2,576 trillion in undisbursed loans, equivalent to 22.41% of total credit limits. Lending prospects are also supported by strong funding and liquidity conditions, with the AL/DPK ratio at 24.74% and third-party funds (DPK) rising 13.47% year-on-year in May. Meanwhile, lending conditions remained favorable, with the average lending rate at 8.72% and the one-month deposit rate at 4.26%.
2026-06-18
Indonesia Loan Growth Strongest in 14 Months
Indonesia's annual loan growth accelerated to 9.98% year-on-year in April 2026 from 9.49% in the previous month, marking the fastest increase since February 2025. The growth was primarily driven by strong increases in investment lending (19.48%), working capital loans (6.04%), and consumer credit (6.13%). However, the central bank is still holding a sizable pool of undisbursed loan facilities totaling IDR 2,551.42 trillion, equivalent to 22.57% of the total available credit ceiling. To boost loan growth, the central bank also improved the efficiency of banking interest rates, with the credit interest rate recorded at 8.73% in April 2026 and the 1-month deposit interest rate at 4.16%. Looking ahead, Bank Indonesia expects credit growth to remain within a stable range of 8–12% in 2026.
2026-05-20