Bank credit issuance continues to rise despite persistently high undisbursed loans, according to Bank Indonesia (BI).

Overall loan growth climbed to 12.67 percent year-on-year (yoy) in June, up from 11.51 percent yoy recorded in May.   

Investment credit shows the highest growth among bank credit categories at 24.9 percent yoy, followed by working capital loans at 8.94 percent and consumer loans at 5.75 percent. 

“Bank Indonesia projects that loan growth in 2026 will be maintained within the range of 8-12 percent,” said BI Governor Perry Warjiyo in a virtual press conference on Wednesday. 

He noted that the prospects for credit growth on the demand side was reflected by high undisbursed loans, which refer to approved lending facilities that have yet to be utilized, totaling Rp 2.49 quadrillion (US$139 billion), 21.52 percent of the credit ceiling. 

“It is necessary to continue encouraging the realization to support financing in the economy,” he added. 

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