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View all search resultsBanks expect slight improvement in credit growth after disappointing 2025
Indonesia’s banking industry is cautiously optimistic about 2026 loan growth after sluggish demand this year.
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High-rise buildings are seen on March 14, 2021, in the Sudirman Central Business District in South Jakarta. (AFP/Adek Berry)
Indonesia’s banking industry is cautiously optimistic about the outlook for loan growth after sluggish demand this year.
Federation of Private Domestic Banks (Perbanas) chairman Hery Gunardi said in a press conference on Wednesday that loan growth might improve next year to fall between 9 and 11 percent, which would mark a marginal increase from Bank Indonesia’s (BI) target of 8 to 11 percent set for this year.
Loan growth slowed to 7.36 percent year-on-year (yoy) in October from 7.7 percent in the preceding month, the latest industry data shows.
Hery also pointed out that the volume of approved but undisbursed loans remained high at Rp 2.4 quadrillion (US$143.9 billion) as of October, up from Rp 2.3 quadrillion in September, according to BI data.
That amount represents 22.97 percent of total credit lines.
“This means that many debtors have gained access to credit or financing from banks, but for certain reasons, they take a wait-and-see approach before undertaking any expansion or investment,” Hery said.
Read also: Banks still 'cautious' about lending to high-risk MSMEs
