Indonesia's annual loan growth rose by 9.49% year-on-year in March 2026, picking up from a three-month low of 9.37% in the previous month. The uptick was primarily driven by strong growth in investment lending (20.85%), working capital loans (4.38%), and consumer credit (5.88%). From the demand side, banks are still holding a sizable pool of undisbursed loan facilities totaling Rp2,527.46 trillion, equivalent to 22.59% of the total available credit ceiling. On the supply side, the ratio of liquid assets to deposits stood at 27.85% in March, while third-party funds (TPF) grew robustly by 13.55% year-on-year. Looking ahead, Bank Indonesia expects credit growth to remain within a stable range of 8–12% in 2026, supported by both demand and supply dynamics. The central bank also signaled plans to further strengthen banks’ funding capacity, including through the development of non-traditional funding instruments beyond conventional deposits, in a bid to sustain lending momentum.