Indonesia’s unused bank loans reach Rp2,562 trillion in September

Indonesian banks had Rp2,562 trillion in undisbursed loans as of September 2026, representing 21.7 per cent of available credit facilities, according to Bank Indonesia. Governor Destry Damayanti said the unused borrowing capacity indicated scope for further lending growth.

Speaking at a press conference on 21 October 2026, the central bank said bank lending rose 13.26 per cent year on year in September. Investment loans increased 23.2 per cent, working-capital loans grew 11.89 per cent and consumer lending expanded 4.86 per cent.

Deputy Governor Solikin M. Juhro said private companies had begun supporting credit demand growth during the first half of 2026. Investment and working-capital lending were the main drivers, with most of those loans going to the private sector. He said banks’ liquidity remained sufficient to support lending.

To encourage more lending, Bank Indonesia outlined a two-stage reduction in reserve requirements. For conventional commercial banks, the requirement will fall from 9 per cent to 8 per cent on 1 November 2026, then to 7 per cent on 1 December 2026.

For Islamic commercial banks and Islamic business units, the requirement will decline from 7.5 per cent to 6.5 per cent on 1 November 2026, then to 5.5 per cent on 1 December 2026. Bank Indonesia also said its Macroprudential Liquidity Incentive Policy rate would decrease from 6 per cent to 5 per cent from 1 December 2026.

By sector, the central bank reported lending growth of 14.6 per cent in manufacturing, 15.1 per cent in mining, 10.6 per cent in construction and 13.4 per cent in transport.