Financial Stability Review 46: Room for Credit Disbursement Remains Open to Support Higher Economic Growth

No. 28/51/DKom

Amid persistently high global uncertainty and increasingly complex global economic fragmentation, Indonesia's financial system remains solid and stable. Meanwhile, banking and financial industry resilience remains intact, accompanied by ample liquidity and room for credit disbursement remains open to support higher economic growth. That was the key takeaway delivered by the Senior Deputy Governor of Bank Indonesia, Destry Damayanti, at the launch ceremony for Financial Stability Review (FSR) Number 46, February 2026, at Bank Indonesia in Jakarta (27/02/26). The launch was attended by the Secretary of the Financial System Stability Committee (KSSK) as well as leaders from the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Indonesia Financial Services Authority (OJK), Indonesia Deposit Insurance Corporation (LPS), banking industry, nonbank financial industry and academia.

Credit growth of 9.69% (yoy) in December 2025, which primarily flowed to the Government's priority sectors, contributed to 5.11% (yoy) economic growth in Indonesia in 2025. Further opportunities for Indonesia's economy to grow higher remain wide open. This is supported by the availability of ample liquidity in the banking industry. "In January 2026, undisbursed loans in the banking industry were recorded at Rp2,506.47 trillion, accounting for 22.65% of the total credit available, which could be optimised further to boost growth," concluded Destry. "To that end, Bank Indonesia urges the banking industry to continue adjusting special rates to encourage a faster decline in lending rates and, therefore, strengthen banking intermediation. Moving forward, solid intermediation is projected in 2026 in the 8-12% (yoy) range, which is consistent with credit growth in January 2026 at 9.96% (yoy)," emphasised Destry.

Destry also highlighted the importance of interagency synergy when strengthening the contribution of the national financial system to economic growth. To that end, Bank Indonesia has strengthened performance-based and forward-looking Macroprudential Liquidity Incentive Policy (KLM) to ensure adequate liquidity and accelerate credit disbursement to the Government's priority sectors. As of the first week of February 2026, the banking industry has received KLM incentives totalling Rp427.5 trillion.

Destry took the opportunity to reiterate the need for interagency synergy to support credit growth and accelerate further lending rate reductions in the banking industry, thereby ensuring effective policy transmission and fostering economic activity. The accommodative macroprudential policy mix, which includes strengthening forward-looking KLM policy, is oriented towards ensuring adequate liquidity is available, while accelerating new loan disbursements to priority sectors. Synergy with the Government and other relevant authorities under the auspices of the Financial System Stability Committee (KSSK) is key to building optimism and strengthening confidence that Indonesia's economy can accelerate, while maintaining financial system stability.

Seeking to strengthen mutual understanding and optimism among financial industry players concerning the latest financial system stability developments as well as the collective efforts to increase the contribution of banking intermediation to economic growth, Bank Indonesia hosted a national seminar, entitled Strengthening Synergy to Accelerate Intermediation and High Economic Growth. The seminar was attended by speakers and resource persons from Bank Indonesia, the Coordinating Ministry for Economic Affairs, the banking industry and relevant associations.

Financial Stability Review (FSR) Number 46 is entitled Accelerating Intermediation for High Economic Growth, thereby emphasising that financial system stability remains solid in Indonesia despite global uncertainty, supported by banking and nonbank financial industry resilience, as well as maintained corporate and household performance. The launch of FSR 46 serves as a strategic reference for policymakers, industry players, academics and the broader community. Furthermore, the publication is expected to create momentum in terms of building positive expectations, particularly in the business community, concerning a resilient financial system and higher growth.

Jakarta, 27th February 2026

Communication Department

Ramdan Denny Prakoso

Executive Director