Undisbursed Loan Increased, BI Examines Weak Credit Demand

Bank Indonesia (BI) has also noted the high level of undisbursed loans or loans that have not been disbursed as an indication that the business world is not fully ready to expand.

Based on data from the Financial Services Authority (OJK), the value of credit that has not been withdrawn continues to increase in recent months, from Rp. 2,372 trillion in August 2025 to Rp. 2,450 trillion in October 2025, then again to Rp. 2,509.4 trillion as of November 2025.

Head of the BI Macroprudential Policy Department Solikin M Juhro explained that this attitude was influenced by high global uncertainty and funding costs that were considered not attractive enough, so that business actors chose to wait for more conducive conditions.

He added that the high undisbursed loan was mainly related to the weak credit demand, and many business actors had not seen the right momentum to expand their business so as to delay loan disbursements.

"I said earlier, of course, when we see why he has a high undisbursed loan. In fact, they usually wait and see," he said at a media briefing entitled Assessment of the Effectiveness of Macroprudential Policy in Stimulating Credit Growth in 2025, Monday, December 22.

He added that on the demand side, business actors tend to rely on internal funds or alternative sources of financing rather than attracting new loans with interest rates that are still relatively high.

"This is from the demand side, then he wah, rather than borrowing high interest rates, I'd rather use internal funds or funds from other sources," he explained.

Responding to this condition, he said that BI has prepared steps to encourage credit demand.

Solikin explained that the policy taken was not only through regular and macroprudential instruments, but also by strengthening communication and coordination across authorities.

He said BI continues to identify various obstacles that hinder credit demand, especially from the real sector.

According to him, the results of the identification will be the basis for strengthening coordination to encourage a response from the demand side.

"We are indeed strengthening coordination to encourage demand-side responses," he said.

He said that in the future, BI will also encourage the acceleration of intermediation through the Pinisi Program (Acceleration of Indonesian Intermediation) which is aimed at accelerating the distribution of credit to productive sectors that can drive economic activity while increasing investor confidence.

"The policies that we will do in the future, besides using regular instruments, macroprudential instruments. We also carry out coordination, communication and strengthened coordination to encourage demand-side response, real sector response," he said.

According to him, the coordination was carried out not only internally at BI, but also with the government and in the Financial System Stability Committee (KSSK) forum, with the aim of aligning views on priority sectors that have the potential to become the engine of economic growth.

"The main thing beyond that is to build the perception of economic confidence," he explained.

He emphasized that the credibility of policies and clear communication is very important so that business actors and the public are not overwhelmed by concerns.

Solikin said that with a coordinated and credible policy, economic confidence is expected to strengthen again and encourage credit withdrawals.