Indonesia’s Bank Lending Grows 13.58%, Gross NPL Stands at 2.10% in July

JAKARTA, Jakartaweekly.com—The Financial Services Authority (OJK) recorded a 13.58% year-on-year (yoy) increase in bank lending in July 2026, bringing total outstanding loans to Rp9,135 trillion.

By loan usage, investment loans recorded the highest growth at 25.13% yoy, followed by working capital loans at 11.04% yoy, while consumer loans grew 5.38% yoy.

By debtor category, corporate loans recorded the highest growth, rising 22.10% yoy. Meanwhile, lending to micro, small, and medium-sized enterprises (MSMEs) continued its upward trend, growing 1.62% yoy. By bank ownership, loans extended by state-owned banks recorded the highest growth at 16.95% yoy.

As of July 2026, the outstanding balance of Buy Now, Pay Later (BNPL) loans reported through the Financial Information Services System (SLIK) stood at Rp31.56 trillion, equivalent to 0.35% of total banking loans. However, BNPL lending continued to grow rapidly, rising 31.22% yoy, although this was slower than the 33.54% yoy growth recorded in June 2026. The number of BNPL accounts reached 33.50 million, up from 32.77 million in June 2026.

Meanwhile, third-party funds (DPK) accelerated, growing 11.21% yoy to Rp10,336 trillion. Deposits recorded the highest growth at 13.13% yoy, followed by current accounts and savings, which grew 11.81% yoy and 8.37% yoy, respectively.

“Banking liquidity remains at an adequate level,” OJK Board of Commissioners Member Dian Ediana Rae said at a press conference on Monday, September 7, 2026.

The Liquid Assets to Non-Core Deposits (AL/NCD) and Liquid Assets to Third-Party Funds (AL/DPK) ratios stood at 102.45% (June 2026: 101.92%) and 23.10% (June 2026: 23.08%), respectively, remaining above their respective thresholds of 50% and 10%. Meanwhile, the Liquidity Coverage Ratio (LCR) stood at 187.5%.

The OJK also assessed that credit quality remained well maintained, with gross non-performing loans (NPL) at 2.10% and net NPL at 0.81% as of July 2026. In June 2026, gross NPL stood at 2.09%, while net NPL was 0.82%.

Meanwhile, the Loan at Risk (LaR) ratio stood at 8.39%, down from 8.47% in June 2026. In terms of profitability, banks’ return on assets (ROA) stood at 2.45%, compared with 2.47% in June 2026.

The banking sector also maintained strong resilience, supported by adequate risk mitigation buffers. The capital adequacy ratio (CAR) stood at 23.84%, up from 23.70% in June 2026.