Bank Indonesia Reveals Credit Growth Is Not Yet Strong

Rupiah (Photo: Antara)

JAKARTA - Bank Indonesia (BI) said that bank credit growth needs to continue to be encouraged to support economic growth.

BI Governor Perry Warjiyo revealed that bank credit in August 2025 was not yet strong, although it increased from July 2025 by 7.03 percent (yoy) to 7.56 percent (yoy) in August 2025.

He said that in terms of demand, the development of credit has not been strongly influenced by the attitude of waiting for business actors (wait and see), credit interest rates that are still high, and the greater use of internal funds for business financing.

"This development has resulted in large loan facilities that have not been disbursed, as reflected in the loanbursed ratio in August 2025 which reached Rp2,372.11 trillion or 22.71 percent of the available credit ceiling," he said at a press conference, Wednesday, September 17.

He said that the largest loan-bursed ratio, especially in the Industrial, Mining, World Business Services and Trade sectors, with the type of working capital credit.

Meanwhile, in terms of supply, Perry said that the increase in credit was supported by the lax banking liquidity as reflected in the high ratio of liquid assets to Third Party Funds (AL/DPK) of 27.25 percent in August 2025.

According to him, it is in line with the expansion of monetary liquidity and KLM Bank Indonesia, as well as the interest in improving bank credit distribution as reflected in the requirements for lending recognition.

However, he said that the high lending rate is still one of the factors that prevent further credit/financing increases to support higher economic growth.

"Bank Indonesia continues to coordinate with the Government and KSSK to encourage the distribution of bank credit/financing," he said.

Overall, Perry said that Bank Indonesia predicts bank credit growth in 2025 to be in the range of 8 percent to 11 percent.