Bank Indonesia notes Rp 2,548 trillion in undisbursed loans

Demand Dynamics and Government-Led Growth

On the demand side, Destry explained during a press conference at the BI Office in Central Jakarta on September 24, 2026, that credit growth through the second quarter was driven primarily by government-led activities. Meanwhile, demand from the private sector remained relatively subdued.

Why is the undisbursed loan still at the Rp 2.500-an triliun level? From the demand side, indeed, if we look at this credit growth up to the second quarter, it was still very much driven by government-led, Destry said.

Despite the private sector lag, central bank officials have begun observing initial signs of rising credit demand from private businesses. This shift indicates a gradual pickup in private economic activity.

Banking Liquidity and Monetary Incentives

On the supply side, Bank Indonesia found that certain commercial banks chose to park their liquidity in securities rather than channel funds into loans. These placements occurred primarily in Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI).

To stimulate lending, the central bank utilizes an incentive and disincentive mechanism via the statutory reserve requirement, known as Giro Wajib Minimum (GWM). Lenders that allocate excessive liquid assets to securities do not receive GWM incentives.

Conversely, institutions holding fewer securities and actively extending loans qualify for GWM reductions. This policy is designed to supply banks with additional liquidity that can be turned over into active credit facilities.

We look at which banks are channeling credit even though they have liquidity. So we know that Himbara is currently the most active, but we also see that some banks are already starting to see demand, Destry noted.

Productive Sector Expansion in August 2026

Bank Indonesia reported positive momentum in credit growth for August 2026. This expansion concentrated largely in investment credit and working capital credit directed toward productive sectors.

Actually, this is a good thing because it means that credit growth is entering the productive sector. So for us, this is also a signal that economic activity continues to turn with its economic capacity increasing because of the investment credit earlier, Destry concluded.