BI Sets Ambitious Credit Growth Target for 2026

Banking Industry Reacts to New Projection

Bank Indonesia has set a credit growth target of 8-12% for 2026, prompting varied responses from banking executives. The central bank's governor, Perry Warjiyo, expressed optimism about achieving this growth during the 2025 Bank Indonesia Annual Meeting.

Bankers' Perspectives on Credit Growth

Chief Commercial Banking Officer of Bank Permata, Henry Widjaja, stated that his bank will align its credit growth with market conditions. Widjaja emphasized that growing significantly below market rates could weaken the bank's position. He noted that demand-side factors remain a significant challenge for credit growth, as industrial players' financing needs are closely tied to economic developments.

In contrast, Citi Indonesia CEO Batara Sianturi expressed a more optimistic view, suggesting that credit growth could surpass expectations in 2026. Sianturi pointed to government incentives and the prospect of lower global and domestic interest rates as potential catalysts for increased credit demand. He noted that a more conducive interest rate environment could stimulate borrowing and overall economic activity.

BI's Macroprudential Policy Support

To support the credit growth target, BI Governor Perry Warjiyo announced that the central bank will maintain a loose macroprudential policy stance in 2026. The bank plans to provide macroprudential liquidity incentives to banks that quickly lower their interest rates. This policy aims to encourage more aggressive lending practices among banks and stimulate overall credit growth.

The combination of BI's accommodative monetary stance and government support measures is expected to create a more favorable environment for credit expansion in the coming year. Banks are likely to adopt a cautious yet optimistic approach as they navigate the evolving economic landscape.