BI Highlights Rp2.548 Trillion in Undisbursed Loans Amid Rising Private Financing 

Jakarta: Bank Indonesia (BI) noted that undisbursed loans stood at around Rp2,548 trillion as of July 2026, amid rising demand for financing from the private sector. 

BI Governor Destry Damayanti said the high level of undisbursed loans was influenced by both credit demand and supply. As of the second quarter of 2026, credit growth was still largely driven by government-related activities. 

Meanwhile, private-sector credit demand remained relatively limited. However, BI has begun to see a shift in the latest data.

“In the latest data, we are seeing the private sector beginning to pick up. This means there is already some momentum on the demand side to take out credit,” Destry said at the Monetary and Fiscal Policy Synergy Press Conference at Bank Indonesia in Jakarta, as quoted by Antara on Friday, September 25, 2026.

Banks Begin Channeling Liquidity Into Credit 

On the supply side, Destry said some banks had previously opted to place their liquidity in securities, including Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI), when credit demand remained weak.

To encourage greater bank intermediation, BI strengthened its Macroprudential Liquidity Incentive (KLM) policy for Money Market Deepening (PPU) effective September 1, 2026.

Under the scheme, banks can receive incentives of up to 2%, or 200 basis points (bps), of third-party funds (DPK) if they keep their holdings of SBN and SRBI outside reverse repos below 19% of total funding.  

Destry said the incentives are provided through reductions in banks’ reserve balances at BI as part of their average-based fulfillment of the statutory reserve requirement (GWM). BI hopes the policy will encourage more bank liquidity to flow toward financing economic activities. 

Signs of stronger bank lending began to emerge in August 2026. Bank credit grew 13.65% year-on-year (yoy), driven by investment loans, which increased 25.11%, and working capital loans, which grew 11.45%. 

“This is a very positive development because it means credit growth is flowing into productive sectors. For us, this is also a signal that economic activity continues to expand as productive capacity increases, supported by investment lending,” Destry said. 

(Razaqa Hariz)