Already Drowned Rp200 Trillion, Banking Loans Only Grow 7.7 Percent

JAKARTA - Bank Indonesia (BI) reported that bank credit in September 2025 was still recorded at 7.70 percent (yoy), although it increased slightly from 7.56 percent (yoy) in August 2025.

BI Governor Perry Warjiyo said credit demand has not been strongly influenced by the attitude of business actors who are still waiting and seeing, optimizing internal financing by corporations, and relatively high lending rates.

"This development is reflected in the unbursed loan facility (undisbursed loan) in September 2025 which is still quite large, reaching Rp2,374.8 trillion or 22.54 percent of the available credit ceiling, especially in the corporate segment with the main contribution from the trade, industry and mining sectors, as well as with the type of working capital credit," he said at a press conference, Wednesday, October 22.

He conveyed that in terms of offers, the adequate bank financing capacity was supported by the ratio of Liquid Equipment to Third Party Funds (AL/DPK) of 29.29 percent and DPK which grew by 11.18 percent (yoy) in September 2025.

According to him, this is in line with the Government's financial expansion, including the placement of Government funds in several large banks and the policy of easing liquidity and incentives for Bank Indonesia's macroprudential policies.

"The interest in lending bank credit is generally quite good as reflected in the fairly loose lending requirements, except for the consumption credit and MSME segments in line with the bank's prudence in the midst of credit risk in the two segments," he explained.

Perry said that working capital credit and consumption credit growth slowed to 3.37 percent (yoy) and 7.42 percent (yoy), respectively, while investment credit growth increased to 15.18 percent (yoy).

According to him, MSME loans and sharia financing have grown to 0.23 percent (yoy) and 7.55 percent (yoy), respectively.

He conveyed that Bank Indonesia predicts credit growth in 2025 will be at a lower limit of 8 percent to 11 percent and will increase in 2026.

"In the future, Bank Indonesia will continue to strengthen coordination with the Government and KSSK to increase bank credit/financing growth and improve interest rate structure," he said.

Previously, the Ministry of Finance (Kemenkeu) was optimistic that the placement of funds of Rp200 trillion in the banking sector would encourage national credit growth to reach 10 percent by the end of 2025.

Director General of Economic and Fiscal Strategy of the Ministry of Finance Febrio Kacaribu said that this policy is expected to be able to move the real sector and accelerate the pace of economic growth, especially in the fourth quarter of 2025.

"We hope that by the end of 2025 it can go to 10 percent so that it will be quite real later on working capital credit, consumption credit, investment credit, and part of it will directly have an impact on the performance of economic growth in the fourth quarter of 2025," he said at the 2026 State Budget Completion, Thursday, October 9.

The placement of government funds to banks began on September 12, 2025, and was channeled to five banks, namely four state-owned banks (Himbara) and one sharia bank, with details, namely Bank Rakyat Indonesia (BRI) Rp55 trillion, Bank Negara Indonesia (BNI) Rp55 trillion, Bank Mandiri Rp55 trillion, State Savings Bank (BTN) Rp25 trillion and Bank Syariah Indonesia (BSI) Rp10 trillion.

Based on data from the Ministry of Finance as of October 9, 2025, the realization of the placement of government funds in five Himbara banks shows a positive trend, namely Bank Mandiri has utilized around 74 percent or Rp40.7 trillion of the total Rp55 trillion fund.

Meanwhile, BRI has disbursed around 62 percent or IDR 34.1 trillion of total funds of IDR 55 trillion, BNI reaches 50 percent or IDR 27.5 trillion, Bank BTN disburses around 19 percent or IDR 4.75 trillion, and BSI reaches 55 percent or around IDR 5.5 trillion from the placement of funds of IDR 10 trillion.

Overall, the funds that have been disbursed to the real sector are estimated at IDR 112.5 trillion.

According to Febrio, this scheme not only provides cheap funds for banks, but also encourages lending to the productive sector.

"We hope this will continue, because it doesn't just move the cash, but the interest is cheaper, so they will prioritize using this money to be channeled to the real sector," he said.