Indonesia’s loan growth accelerated to 11.51% year-on-year in May 2026, up from 9.98% in April. This was the fastest annual expansion since July 2024, largely driven by robust gains in investment credit (21.95%), working capital credit (8.09%), and consumer credit (5.89%).
The banking sector remained resilient despite risks associated with the conflict in the Middle East, supported by ample liquidity, strong capital buffers, and low credit risk. Looking ahead, Bank Indonesia expects credit growth to stay within the 8%–12% range in 2026, underpinned by Rp2,576 trillion in undisbursed loans, equivalent to 22.41% of total approved credit limits.
Lending prospects are further reinforced by healthy funding and liquidity conditions, as reflected in the AL/DPK ratio of 24.74% and a 13.47% year-on-year increase in third-party funds (DPK) in May. Lending conditions also remained accommodative, with the average lending rate at 8.72% and the one-month deposit rate at 4.26%.
