FX.co ★ Indonesia Loan Growth Eases to 3-Month Low

Indonesia’s annual loan growth slowed slightly to 9.37% year-on-year in February 2026, down from 9.96% in January, marking its weakest pace since November 2025. The moderation reflects softer purchasing power, a shrinking middle class, and greater prudence among banks in extending credit. Even so, overall expansion was underpinned by robust investment lending, which surged 20.72% from a year earlier, along with increases in working capital loans (3.88%) and consumer credit (6.34%). Looking ahead, Bank Indonesia projects that total credit growth in 2026 will remain broadly stable in the 8–12% range, supported by both supply- and demand-side factors.