Investment loans dominate Bali’s bank credit through June 2026

Denpasar, Bali — Credit allocation in Bali’s banking sector was dominated by lending to productive activities in the first half of 2026, with investment loans making up the largest share of outstanding credit as of June, according to data cited by the provincial branch of Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan/OJK).

Media reports quoting OJK Bali head Parjiman state that credit from financial institutions in the province was most heavily channelled to productive uses, particularly investment and working capital. In this breakdown, investment credit reached around Rp44.15 trillion, accounting for 35.85 percent of total bank lending as of June 2026. Consumer credit stood at about Rp40.51 trillion, or 32.89 percent, while working-capital loans were reported at roughly Rp38.49 trillion, equivalent to 31.25 percent of the total.

According to these reports, OJK Bali categorises productive lending as credit supporting business activities that generate goods and services, such as trade, tourism-related services and agriculture. The available data describe how bank credit is allocated by purpose rather than the number of borrowers or their detailed characteristics, meaning they show where funds are flowing but not loan performance or profitability.

Trade, tourism and agriculture absorb most credit

OJK Bali’s figures also highlight three business fields as the largest recipients of bank lending: trade; accommodation and food and beverage services; and agriculture. These sectors broadly mirror Bali’s economic structure, where tourism-linked services and agriculture remain key drivers of activity.

A separate provincial economic report by Bank Indonesia notes that Bali’s economy grew solidly in the second quarter of 2026, supported by services and other production activities. Tourism-related accommodation and food services saw slower growth due to weaker foreign visitor numbers, while other sectors such as construction contributed strongly to overall expansion.

Economic growth outpaces national rate

Bank Indonesia’s August 2026 provincial economic report states that Bali’s economy expanded by 5.78 percent year-on-year in the second quarter of 2026, up from 5.58 percent in the first quarter and above national growth of 5.29 percent over the same period. The report also records quarter-on-quarter growth of 6.91 percent, with nominal gross regional product at Rp89.27 trillion and constant-price output at Rp47.34 trillion.

These growth figures are consistent with other summaries of Bali’s second-quarter performance, which also cite 5.78 percent year-on-year expansion and confirm that the province grew faster than the national economy. Officials have linked the positive trend to stronger investment and broad-based activity in services and construction, even as tourism faces headwinds.

Tourism signals reflect softer foreign arrivals

Tourism remains central to Bali’s economy, with accommodation and food services closely tied to foreign visitor arrivals. National statistics compiled by Statistics Indonesia (Badan Pusat Statistik/BPS) show that there were about 3.2 million foreign tourist visits to Bali in the first half of 2026

Additional reporting indicates that Australia continues to be one of the largest source markets for foreign visitors to Bali, alongside China and India. Government fiscal updates for Bali also point to robust July 2026 foreign arrivals, dominated by tourists from Australia, India and China, underscoring the island’s continued reliance on regional feeder markets.

While the available sectoral and tourism data show that investment and working capital loans together made up roughly two thirds of bank credit, they do not specify how these loans are distributed among districts or business sizes, nor do they provide a detailed breakdown of non-performing loans by sector. As a result, the figures offer a snapshot of Bali’s credit orientation toward productive uses and its macroeconomic performance, rather than a full picture of business conditions or loan quality at the firm level.

Sources

• BCA Sekuritas – news item on Bali debtors dominated by productive sectors
• Bernas.id – article on productive credit dominating Bali debtors
• Bank Indonesia – Laporan Perekonomian Provinsi Bali Agustus 2026
• Balipost.com – report on Bali’s economy growing 5.78 percent in Q2 2026
• Goodstats.id – analysis of Bali’s Q2 2026 economic growth
• Directorate General of Treasury, Ministry of Finance – Bali APBN realisation press release
• Detik.com – article on Bali’s economy growing 5.78 percent and transport sector performance
• Corebusiness.co.id – analysis of Bali and Nusa Tenggara Q2 2026 growth
• RRI.co.id – report on Bali’s economic growth and investment distribution
• Katadata Databoks – infographic and analysis on foreign tourist visits to Bali in H1 2026