Indonesia’s four largest banks are forecast to achieve 9.3 percent loan growth in the fiscal year 2026, supported by stronger demand for wholesale lending and emerging momentum in microloan segments, according to research firm CGS International (CGSI).
After a period of subdued credit expansion earlier in 2025 attributed to macroeconomic uncertainty and tighter liquidity conditions, lending growth is expected to accelerate next year as economic activity stabilises. Wholesale loans are anticipated to remain the principal driver of credit growth, reflecting increased borrowing from corporate and commercial clients.
At the same time, microloans are projected to contribute to overall expansion, bolstered by government programmes aimed at supporting mass-market access to credit and a planned uptick in fiscal spending from the final quarter of 2025. These combined factors are expected to broaden lending beyond traditional large-scale corporate portfolios.
The improved outlook for Indonesia’s banking sector aligns with wider expectations of a rebound in credit demand as economic conditions gain traction. While wholesale lending continues to lead growth, the increased participation of smaller borrowers signals a more diversified credit cycle for the nation’s largest financial institutions.
Overall, the anticipated loan growth underscores strengthening credit momentum in Southeast Asia’s largest economy, reflecting confidence among lenders and borrowers alike ahead of 2026.
Click here for more on Banking
