The Financial Services Authority (OJK) dismissed concerns regarding the accumulation of undisbursed credit facilities, or undisbursed loans, which reached IDR 2,576 trillion. The banking industry supervisory agency assesses that the large nominal figure is not an indicator of weakening credit demand, but rather a strategic fund reserve ready to be used by business actors at any time.
Executive Head of Banking Supervision at OJK, Dian Ediana Rae, explained that the trillions of rupiah in funds have actually been approved by banks. However, disbursement is still awaiting operational readiness, project stages, or the debtor's business plan. OJK believes that along with the improving investment climate and market optimism, these facilities will soon be realized to support real sector financing.
National banking itself recorded impressive performance in May 2026, with credit growth reaching 11.51% year-on-year to IDR 8,918 trillion. The investment credit sector became the main driver of growth, recording a 21.95% increase, indicating corporate expansion zeal.
In addition to credit performance, the liquidity stability of national banking was observed to be very healthy. The ratio of liquid assets to Third-Party Funds (LA/TPF) stood at 24.78%, well above the minimum threshold set by the authority. This condition provides optimism for regulators that banks have strong funding capacity to support the national credit growth target in the range of 8–12% until the end of the year.
