Indonesia Loan Growth Highest Since 2014

2026-08-19 07:42 By Chusnul Chotimah 1 min. read

Indonesia's loan growth increased by 13.58% year-on-year in July 2026, accelerating from a 12.67% rise in the previous month and marking the strongest pace since August 2014.

The acceleration was supported by accommodative macroprudential policies, continuously pursued through the optimization of the Macroprudential Liquidity Incentive (KLM) policy to encourage increased bank lending and financing to priority sectors.

As of the first week of August 2026, KLM incentives obtained by banks totaled IDR 446.5 trillion.

The growth was also supported by the banking sector's high Capital Adequacy Ratio, which stood at 23.70% in June 2026.

Meanwhile, the aggregate banking non-performing loan ratio remained low at 2.09% (gross) and 0.82% (net) in June 2026.

The ratio of liquid assets to third-party funds remained stable at 23.10% in July 2026.



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Indonesia's loan growth increased by 13.58% year-on-year in July 2026, accelerating from a 12.67% rise in the previous month and marking the strongest pace since August 2014. The acceleration was supported by accommodative macroprudential policies, continuously pursued through the optimization of the Macroprudential Liquidity Incentive (KLM) policy to encourage increased bank lending and financing to priority sectors. As of the first week of August 2026, KLM incentives obtained by banks totaled IDR 446.5 trillion. The growth was also supported by the banking sector's high Capital Adequacy Ratio, which stood at 23.70% in June 2026. Meanwhile, the aggregate banking non-performing loan ratio remained low at 2.09% (gross) and 0.82% (net) in June 2026. The ratio of liquid assets to third-party funds remained stable at 23.10% in July 2026.
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