Indonesia Loan Growth Hits 3-Month High

2025-10-22 08:17 By Czyrill Jean Coloma 1 min. read

Indonesia’s annual loan growth rose by 7.7% year-on-year in September 2025, accelerating from 7.56% in the previous month and marking the highest level since June.

Despite the upturn, overall credit demand remained subdued, mainly due to wait-and-see approach among businesses, continued reliance on internal corporate financing, and persistently high lending rates.

This situation is reflected in the substantial volume of undisbursed loan facilities, which reached IDR 2,374.8 trillion in September 2025, equivalent to 22.54% of the total approved credit ceiling.

On the supply side, banks remain well-capitalized to support financing, as indicated by a healthy Liquid Assets to Third-Party Funds (LA/TPF) ratio of 29.29%.

Third-Party Funds (TPF) also grew robustly by 11.18% year-on-year in September.

Looking ahead, Bank Indonesia forecasts that credit growth for full-year 2025 will likely fall at the lower end of the 8–11% target range, with a stronger increase expected in 2026.



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