Indonesia's banking sector expands financing to support economic growth

Bank SMBC Indonesia has partnered with the Asian Development Bank (ADB) to strengthen trade and supply chain financing. The collaboration utilizes an unfunded risk participation scheme to expand funding access for businesses across various segments, aiming to create a more efficient and resilient trade ecosystem.

In this arrangement, the ADB serves as a strategic risk participation partner for Bank SMBC Indonesia’s portfolio. This partnership is designed to bolster existing credit contingency mechanisms while maintaining healthy credit quality. Bank SMBC Indonesia will continue to manage all administrative processes, transaction management, and monitoring in accordance with international standards.

Separately, Bank Indonesia (BI) is urging increased financing to the productive private sector to bolster national economic growth. Following a slowdown in Indonesia’s economic growth to 5.29 percent year-on-year in the second quarter of 2026, BI officials noted that while government stimulus remains a pillar, private sector contribution through enhanced financing is essential to drive higher growth levels. As of July 2026, banking credit growth reached 13.58 percent year-on-year, with investment credit growing by 25.13 percent.