Indonesia banking sector faces slowing credit growth and cautious markets

Bank Indonesia’s latest survey projects credit‑portfolio growth to 7.51% year‑on‑year by the end of 2026, down from 8.06% in the previous survey and below the government’s 8‑11% target. The survey also expects new‑credit disbursement in Q3 2026 to rise modestly to an 84.65% weighted share, with work‑capital, investment and consumer loans remaining the priority, while third‑party deposits (DPK) are forecast to grow only 6.18% annually.

The Lembaga Penjamin Simpanan (LPS) flagged a recent slowdown in middle‑class savings growth over the past three months, though year‑on‑year account numbers and balances continue to rise slightly. LPS attributed the trend partly to a shrinking pool of unbanked adults, now about 15 million.

Indonesia’s stock index (IHSG) edged up around 0.9% as foreign investors posted a net buy of roughly Rp 96.7 billion, but market participants remain cautious ahead of the upcoming Bank Indonesia policy meeting, with profit‑taking tempering gains.

Maybank Indonesia addressed social‑media allegations that a protected mutual‑fund unit could not be redeemed, stating the bank follows regulator rules, monitors the case closely with the fund manager, and provides multiple communication channels for investors.

Bank Central Asia (BCA) announced the Sanggar Bakti program, a partnership to support arts‑performance communities through funding, mentorship and capacity‑building, selecting Citra Art Studio as its first beneficiary.