Indonesia Financial Services Authority reports March bank credit growth accelerated to 9.49 percent with SME lending returning to growth

The Indonesia Financial Services Authority reported that domestic banking intermediation continued to expand in March 2026 despite global economic volatility, with total loans rising 9.49 percent year on year to IDR 8,659.05 trillion and third-party funds increasing 13.55 percent to IDR 10,230.81 trillion. Risk indicators remained contained, with Loan at Risk at 8.94 percent, gross non-performing loans at 2.14 percent and net non-performing loans at 0.83 percent, while the loan-to-deposit ratio edged down to 84.64 percent from 84.72 percent in February. Annual loan growth was supported by state-owned commercial banks, private domestic and foreign banks, and branches of foreign banks. The largest sector contributions came from construction at IDR 181.98 trillion or 46.67 percent, households at IDR 103.83 trillion or 5.56 percent, and manufacturing at IDR 97.62 trillion or 7.96 percent. By purpose, investment loans grew 20.85 percent, working capital loans 4.38 percent and consumer loans 5.88 percent. Corporate lending increased 14.88 percent, while SME lending returned to positive growth at 0.12 percent year on year to IDR 1,498.64 trillion after a 0.56 percent contraction in February, with SME non-performing loans at 4.60 percent.