BI Values Credit Demand is Still Weak

Bank Indonesia (BI) estimates that credit growth in 2025 is at the lower limit of the range of 8 percent to 11 percent (yoy) and will increase in 2026.

"In the future, Bank Indonesia will continue to strengthen coordination with the Government and the KSSK to encourage credit/bank financing growth and improve the interest rate structure," said BI Governor Perry Warjiyo in a statement, Wednesday, December 17.

He added that the role of banking credit in encouraging economic growth needs to continue to be improved.

Perry said that bank credit in November 2025 grew by 7.74 percent (yoy), up from 7.36 percent (yoy) in the previous month.

"Credit demand is indicated to have not been strongly influenced by the wait-and-see behavior of business actors, the optimization of internal financing by corporations, and the decline in credit interest rates which are still slow," he explained.

He added that the undisbursed loan facility in November 2025 was still large, reaching IDR 2,509.4 trillion or 23.18 percent of the available credit ceiling.

Meanwhile, on the supply side, the bank's financing capacity remains adequate supported by the ratio of Liquid Assets to Third Party Funds (AL/DPK) which increased to 29.67 percent and DPK which grew by 12.03 percent (yoy) in November 2025.

According to him, this development is also driven by the expansion of monetary liquidity and the relaxation of Bank Indonesia's KLM, as well as the expansion of government finances including the placement of Government funds in several large banks.

He added that the interest in distributing banking loans is generally still good, which is reflected in the loosening of lending requirements, except for the consumption and SME credit segments due to increased credit risk in both segments.

"This condition affects the growth of SME loans in November 2025 which contracted by 0.64 percent (yoy)," he explained.