Indonesia bank lending growth eases after reaching 10-year high

Indonesian bank lending growth moderated to 13.2 per cent after reaching 13.6 per cent, a level the Financial Services Authority (OJK) described as the highest in 10 years. The regulator said lending had strengthened across both state-owned and private banks.

OJK chair Friderica Widyasari Dewi presented the figures at the opening of Kadin’s national leadership meeting on 29 October 2026. She said outstanding bank loans exceeded Rp9,200 trillion, while third-party deposits reached Rp10,492 trillion following double-digit growth.

Corporate lending expanded by 21.03 per cent, although consumer credit growth slowed. Loans to micro, small and medium-sized enterprises returned to positive growth of 2.68 per cent after contracting early in the year, Friderica said.

By purpose, investment lending increased by 23 per cent year on year, while working-capital credit rose by 11.89 per cent. Friderica said the financial services sector continued to support domestic industry despite challenging global conditions.

The banking sector’s capital ratio stood at 24.3 per cent, with a non-performing loan ratio of 2.07 per cent. Liquid assets were equivalent to 24.08 per cent of third-party deposits, according to the figures she presented.

The industry-wide loan-to-deposit ratio was 88.11 per cent. State-owned banks recorded a ratio of 89 per cent, compared with 85.28 per cent for national private commercial banks.