OJK Records Banking Loans Growing 7.36 Percent As Of October 2025

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that banking credit as of October 2025 was recorded to have grown 7.36 percent yoy to IDR 8,220.21 trillion.

OJK Banking Supervision Chief Executive Dian Ediana Rae explained, based on the type of use, investment credit recorded the highest growth of 15.72 percent, followed by Consumption Credit growing 7.03 percent, while Working Capital Loans grew 2.39 percent yoy.

"From the debtor category, corporate credit grew by 11.02 percent, while MSME loans contracted 0.11 percent yoy," said Dian, Thursday, December 11.

He explained that credit growth of 7.36 percent was mainly contributed by growth in the household sector by 7.28 percent, followed by the processing industry by 7.53 percent, and mining and quarrying by 14.58 percent.

Furthermore, credit distribution to several sectors recorded a high growth on an annual basis, reaching double digits, including the government administration, defense, and social security sectors of 36.79 percent; electricity, gas, steam/hot water and cold air procurement of 26.40 percent; professional, scientific, and technical activities of 25.32 percent, and other service activities of 22.84 percent.

On the other hand, Third Party Funds (DPK) recorded a high growth of 11.48 percent yoy to Rp9,756.6 trillion.

The BI-Rate has remained stable after a 125 bps decline since the beginning of the year, and has been followed by a gradual drop in banking interest rates.

"Compared to the previous year, the average weighted rupiah loan interest rate fell 16 bps (yoy) and 5 bps (mtm) to 9.01 percent on Okt-25 from 9.17 percent on Okt-24 and 9.06 percent on Sep-25, mainly driven by a decrease in the productive lending rate," continued Dian.

Meanwhile, the Working Capital Credit interest rate fell 42 bps (yoy) and 16 bps (mtm) to 8.30 percent on Okt-25 from 8.72 percent on Okt-24 and 8.46 percent on Sep-25. The Investment Credit interest rate fell 39 bps (yoy) but still increased 7 bps (mtm) to 8.32 percent on Okt-25 from 8.71 percent on Okt-24 and 8.25 percent on Sep-25.

In terms of raising funds, the average weighted interest rate of the rupiah DPK was also observed to decrease compared to the previous month's 10 bps with a decrease in all types of DPK, especially deposits, in line with the trend of decreasing BI-Rate interest rates.

The weighted interest rate of the DPK also decreased by 22 bps compared to October last year by 3.07 percent.

The deposit interest rate decreased by 53 bps (yoy) from 5.28 percent on Okt-24 and 21 bps (mtm) from 4.96 percent on Sep-25 to 4.75 percent on Okt-25.

Meanwhile, the liquidity of the banking industry in October 2025 was adequate, with the Liquid Equipment/Non-Core Deposit (AL/NCD) ratio and Third Party Liquid/Department (AL/DPK) ratios of 130.97 percent and 29.47 percent, respectively, still above the threshold of 50 percent and 10 percent, respectively.

Liquidity Coverage Ratio (LCR) is at the level of 210.43 percent. Furthermore, LDR was recorded at 84.26 percent, still considered adequate in anticipating an increase in credit.

Meanwhile, credit quality is maintained with a gross NPL ratio of 2.25 percent and net NPL relatively stable at 0.90 percent.

Loan at Risk (LAR) decreased compared to the previous month to 9.41 percent.

Banking resilience also remains strong as reflected in capital (CAR) which is at a high level of 26.38 percent, so that it can be a strong risk mitigation cushion to anticipate conditions of global uncertainty.

Furthermore, the banking buy Now Pay Later (BNPL) loan portion was recorded at 0.31 percent of total bank credit and continued to record high growth on an annual basis.