The respondents, according to the survey, project between 10 and 15 percent of loan growth this year, in which 75 percent of surveyed state lenders expect growth at more than 15 percent.

Meanwhile, only 32 percent of local private lenders and 19 percent of foreign banks expect growth higher than 15 percent this year.

The seventh survey of its kind asked 78 respondents from 58 lenders' top management officials in the country, whose assets represent 87 percent of Indonesia's banking assets.

(Read also: Aggressive state banks struggle to shine)

"There is clearly more optimism among bankers in 2017," PwC Indonesia Financial Services Industry leader David Wake said at the survey results presentation in Jakarta on Wednesday.

"However, our survey points out that one must understand the key differences between large state-owned banks with expansive branch networks and economies of scale, private local banks and foreign-owned banks."

The Financial Services Authority sets a more conservative target of 11 percent of loan growth this year, Financial Services Authority (OJK) deputy commissioner for integrated supervision Agus Siregar said.

The banking industry expects 13 percent of loan growth this year, according to banks business plans submitted with the OJK.

Channeled loan amounts grew by 7.87 percent last year compared to 10.1 percent in 2015 due to weak demand and soaring bad debts. (bbn)

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