Indonesia Loan Growth Eases to 3-Month Low

2025-11-19 07:36 By Chusnul Chotimah 1 min. read

Indonesia’s annual loan growth eased to 7.36% year-on-year in October 2025, down from September’s three-month high of 7.7%.

This marked the lowest growth since July, reflecting weakening purchasing power, a contracting middle class, and greater caution among banks in extending credit.

This trend is evident in the substantial volume of undisbursed loan facilities, which reached IDR 2,450.7 trillion in October 2025, equivalent to 22.97% of the total approved credit ceiling.

" Weak credit demand is being influenced by businesses that are still holding back expansion in a wait-and-see stance, greater reliance on internal financing by corporations, and credit interest rates that remain relatively high," Perry Warjiyo, Governor of BI, said.

Looking ahead, Bank Indonesia expects full-year 2025 credit growth to come in at the lower end of its 8–11% target range, with a stronger pickup anticipated in 2026.



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Indonesia’s annual loan growth eased to 7.36% year-on-year in October 2025, down from September’s three-month high of 7.7%. This marked the lowest growth since July, reflecting weakening purchasing power, a contracting middle class, and greater caution among banks in extending credit. This trend is evident in the substantial volume of undisbursed loan facilities, which reached IDR 2,450.7 trillion in October 2025, equivalent to 22.97% of the total approved credit ceiling. " Weak credit demand is being influenced by businesses that are still holding back expansion in a wait-and-see stance, greater reliance on internal financing by corporations, and credit interest rates that remain relatively high," Perry Warjiyo, Governor of BI, said. Looking ahead, Bank Indonesia expects full-year 2025 credit growth to come in at the lower end of its 8–11% target range, with a stronger pickup anticipated in 2026.
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