BI Notes NPL Credit Consumption Rises Amid Slowing Credit Distribution

BUKITTINGGI - Bank Indonesia (BI) noted that non-performing loans (NPL) in the consumption credit segment showed an increasing trend, along with the slowing rate of growth in consumption credit.

Based on BI data, consumption credit growth in September 2025 was recorded at 7.3 percent on an annual basis (year on year / yoy) or Rp2,307.3 trillion, slowing down compared to the previous month which grew 7.7 percent (yoy) with a value of Rp2,295.4 trillion.

BI Macroprudential Policy Director Irman Robinson explained that although the ratio of consumption credit NPL is still below 5 percent, the upward trend needs to be watched out for.

"The NPL, if we look at consumption credit, is still below 5 percent, actually. But the trend tends to increase, this is what we need to be careful with," he said in a journalist training, Friday, October 24.

Irman added that the slowdown in consumption credit was mainly influenced by the slowing growth of Home Ownership Loans (KPR) and motor vehicle loans (KKB).

As for September 2025, mortgages grew 7.2 percent, slowing down from the previous month by 7.1 percent, while KKB only grew 0.7 percent, down from 3.4 percent in the previous month.

"What we may be concerned about together is the Non Performing Loan on consumption credit, this is also in line with the slowdown in consumption credit, especially for mortgages and KKB," he said.

Overall, bank credit growth in September 2025 was still recorded at 7.70 percent (yoy), slightly increasing compared to 7.56 percent (yoy) in August 2025.

Previously, BI Governor Perry Warjiyo revealed that weak credit demand was influenced by the attitude of business actors who were still waiting and seeing, the use of internal funds by corporations, and the relatively high level of credit interest rates.

The development of this condition is reflected in the unbursed loan facility (undisbursed loan) in September 2025 which reached IDR 2,374.8 trillion, or around 22.54 percent of the total available credit ceiling.

Meanwhile, the largest portion comes from the corporate segment, especially the trade, industrial and mining sectors, with dominance of the type of working capital credit.