Indonesia’s bank credit growth reaches 10-year high of 13.26%

Bank Indonesia recorded bank credit growth of 13.26% in September 2026, the strongest in 10 years, and announced lower reserve requirements aimed at sustaining lending momentum.

Speaking at a media briefing in Jakarta on 23 October, Mal Isnaini Sri Meyyanti, head of BI’s macroprudential policy department, attributed the expansion to domestic economic resilience despite global turbulence. She said businesses were taking advantage of growth opportunities, supported by improving non-oil and gas exports.

Meyyanti said private-sector activity outside government programmes contributed 11 percentage points to credit growth, signalling a recovery in that sector. Government programmes accounted for about 2 percentage points.

Reserve requirements to fall in two stages

For conventional commercial banks, BI announced a reduction in the reserve requirement from 9% to 7%. It will first fall to 8% on 1 November 2026, then to 7% on 1 December 2026.

Sharia commercial banks and sharia business units will see their requirement decline from 7.5% to 5.5%. The first step, to 6.5%, takes effect on 1 November 2026, followed by a reduction to 5.5% on 1 December 2026.

BI also said its macroprudential liquidity incentive policy, known as KLM, would be adjusted from 6% to 5%, effective 1 December 2026. The financing-channel incentive ceiling will fall from 4% to 3% of third-party funds, with coverage expanded to bank lending and financing for business sectors that support job creation.

Eligible priority sectors include agriculture, industry and downstream processing; services, including creative businesses; construction, real estate and housing; and micro, small and medium enterprises, cooperatives, inclusion and sustainability. BI will also provide a money-market deepening incentive capped at 2%, intended to encourage liquidity redistribution and strengthen banking intermediation.