Indonesian Lawmakers Push for Double-Digit Banking Credit Growth

Mukhamad Misbakhun, Chairman of the Indonesian House of Representatives' Commission XI, has identified a significant challenge facing the financial services sector: reigniting double-digit growth in banking credit.

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The biggest challenge right now in the financial sector is how to raise the level of credit growth back to double digits. For the first time in history, credit growth last year was at the level of 9.7 percent, and this will be a challenge.

Misbakhun noted that credit growth in 2025 reached 9.7 percent, a historic low that presents a considerable hurdle. He emphasized the substantial positive impact of achieving double-digit credit expansion, citing its powerful multiplier effect on investment and the real economy.

"The strongest support from the banking sector has implications for the real sector to continue contributing," Misbakhun stated, explaining that robust financing across all business lines, corporate, consumer, and MSMEs, will significantly boost various enterprises. This, in turn, is expected to strengthen the purchasing power of Indonesian citizens, thereby driving national economic growth.

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There is a large multiplier effect from high credit growth. Especially, it is believed to provide a boost to investment.

He concluded that domestic consumption remains a crucial pillar for national economic expansion, underscoring the interconnectedness of banking credit, investment, business activity, and consumer spending in bolstering the Indonesian economy.

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Strong support from the banking sector has implications for the real sector to continue contributing. And the multiplier effect of this financing will be very large. Strong financing for all lines will provide very serious efforts to boost all types of businesses, both corporate, consumer, and MSMEs.