OJK reports strong growth in Indonesian banking credit and online lending

The Indonesian Financial Services Authority (OJK) reported that total banking credit reached Rp9,178 trillion as of August 2026, representing a 13.65% year-on-year growth. Key drivers included investment credit, which grew by 25.11%, and corporate credit, which rose by 22.18%. Strategic sectors such as manufacturing, wholesale and retail trade, mining, agriculture, and construction also showed strong credit distribution.

In contrast to the growth in traditional banking, the online lending (pindar) sector saw outstanding financing reach Rp106.94 trillion, a 22.07% increase. However, this sector faces rising risks, with the 90-day non-performing loan (TWP90) rate climbing to 4.73%. OJK noted that problematic loans in the online sector are heavily concentrated among Gen Z (ages 19-34), who account for 48.22% of total problematic outstanding, and males, who represent 54.22% of the defaults.

Additionally, the Buy Now Pay Later (BNPL) segment within banking grew by 29.10% year-on-year, reaching Rp31.41 trillion across 34 million accounts. While banking liquidity remains adequate, the loan-to-deposit ratio (LDR) rose to 88.14%, reflecting higher credit disbursement relative to funding sources.