he banking industry saw loan growth approaching double-digits in April, even as growth remained sluggish in the micro, small and medium enterprise (MSME) segment, according to the Financial Services Authority (OJK).
The authority reported that overall bank credit grew 9.98 percent year-on-year (yoy) to Rp 8.7 quadrillion (US$482.6 billion) in April, slightly higher than the 9.49 percent increase recorded in March.
Investment credit registered the strongest growth among all categories at 19.48 percent, while working capital and consumer loans posted significantly lower growth at 6.04 percent and 6.13 percent, respectively.
In the debtor categories, the corporate segment posted the highest growth at 15.51 percent yoy in April. On the other hand, MSME debtors saw a modest uptick from 0.12 percent in March to 0.16 percent in April.
Read also: SME lending continues to contract as overall bank loan growth cools
The MSME segment had been in contraction territory since October 2025 before it returned to expansion in March. Despite the improvement, the latest figure is still a far cry from the OJK’s loan growth projection for the segment this year, ranging between 7 and 9 percent.
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The agency previously attributed the sluggish growth in MSME lending to banks’ efforts to clean up their balance sheets and reduce bad loans, while it expects the segment’s performance to rebound and banks to achieve the target range later this year.
