Credit Growth Slows Only 7.77 Percent In June 2025

JAKARTA - The Financial Services Authority (OJK) reported bank credit growth of 7.77 percent on an annual basis or year on year (yoy) in June 2025, with a total value of IDR 8,059.79 trillion.

This figure shows a slowdown compared to the previous month's growth, which was 8.43 percent (yoy) in May 2025.

OJK Banking Supervision Chief Executive Dian Ediana Rae revealed, based on the type of use, investment credit experienced the highest increase of 12.53 percent (yoy), consumption credit grew 8.49 percent (yoy), and working capital loans increased 4.45 percent (yoy).

Meanwhile, in terms of ownership, domestic private commercial bank credit recorded the highest growth of 10.78 percent (yoy).

Meanwhile, based on the type of debtor, credit to national private corporations also grew 10.78 percent (yoy). Meanwhile, credit for micro, small and medium enterprises (MSMEs) rose 2.18 percent (yoy), reflecting the bank's focus on recovering credit quality in the sector.

"If viewed based on the economic sector, credit disbursement in several sectors, the body is high on an annual basis, reaching double digits," he said at a press conference, Monday, August 4.

Dian also added that credit growth based on the economic sector showed a significant increase, such as the mining and quarrying sector recorded the highest growth of 20.69 percent (yoy), the service sector 19.17 percent (yoy), transportation and communication 17.94 percent (yoy), and the electricity, gas and water sector 11.23 percent (yoy).

He conveyed that in terms of funding, Third Party Funds (DPK) grew 6.96 percent (yoy) to Rp9,329 trillion.

"With the giro, savings, and deposits each grew by 10.32 percent, 6.84 percent, and 4.19 percent (on-year) year-on-year," he said.

The decrease in fund funds was accompanied by a sloping interest rate trend. The average weighted lending rate fell 11 basis points to 8.99 percent, mainly due to a decrease in interest rates on productive credit.

On the other hand, the average weighted deposit interest rate DPK also shows a downward trend compared to the previous month.

Bank liquidity is considered well maintained, as reflected in the ratio of liquid assets to non-core funds (AL/NCD) of 118.78 percent and to DPK of 27.05 percent, both far above the threshold of 50 percent and 10 percent, respectively.

In addition, the Liquidity Coverage Ratio (LCR) ratio is also at a high level, which is 199.04 percent.

From the risk aspect, credit quality remains under control where the gross non-performing credit ratio (NPL) is recorded at 2.22 percent and NPL net 0.84 percent.

Loan at Risk (LAR) is at 9.73 percent, has returned to pre-pandemic levels.

"Banking resilience remains strong, as reflected in the Capital Adequacy Ratio (CAR) which is still at a high level of 25.81 percent. This is an important cushion in facing potential global uncertainty," he said.