Indonesia Loan Growth Hits 5-Month High

Indonesia’s annual loan growth accelerated slightly to 9.69% year-on-year in December 2025, up from 7.74% in November, marking the fastest pace since February amid the government’s efforts to boost domestic demand. Loan growth was supported by expansion in consumption loans (6.58%), investment loans (21.06%), and working capital loans (4.52%). However, the volume of undisbursed loan facilities remained high, reaching IDR 2,439.2 trillion in December 2025, equivalent to 22.12% of the total approved credit ceiling. Looking ahead, Bank Indonesia expects full-year 2026 credit growth to come in within its 8–12% target range.

Indonesia’s annual loan growth accelerated slightly to 7.74% year-on-year in November 2025, up from October’s three-month low of 7.36%. This marked the fastest growth since June, amid the government's effort to boost domestic demand. However, the volume of undisbursed loan facilities remained high, reaching IDR 2,509.4 trillion in October 2025, equivalent to 23.18% of the total approved credit ceiling. " Credit demand appears weak, influenced by wait-and-see attitudes among businesses, corporations’ optimization of internal financing, and the slow pace of decline in lending rates," 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.

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.