OJK Reveals Slow Credit Growth In July 2025

Banking credit (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) noted that the function of national banking intermediation remains in a stable condition despite being faced with economic challenges both domestically and globally.

OJK Banking Supervision Chief Executive Dian Ediana Rae said, until July 2025, the banking risk profile was still under control and industrial operations were running optimally.

He said that credit disbursement as of July 2025 grew by 7.03 percent on an annual basis (yoy) with total credit reaching IDR 8,043.2 trillion, although slightly slower than the previous month which grew 7.77 percent.

"Based on the type of use, investment credit grew the highest at 12.42 percent followed by consumption credit at 8.11 percent while working capital loans grew 3.08 percent (yoy)," said Dian at the Press Conference, Thursday, September 4.

He conveyed that based on the debtor category, corporate credit rose 9.50 percent, while MSME loans only grew 1.82 percent, influenced by the focus of banks on recovering credit quality in that segment.

Meanwhile, the Third Party Fund (DPK) in July 2025 grew 7.7 percent (yoy), an increase from the previous month which grew 6.96 percent, with the total DPK reaching Rp9,294 trillion.

Regarding liquidity, the ratio of Liquid Equipment to Non-Core Deposit (AL/NCD) is at the level of 119.43 percent and Liquid Equipment to DPK (AL/DPK) is at 27.08 percent, both are far above the minimum set limit, respectively at 50 percent and 10 percent.

Meanwhile, the liquidity adequacy ratio (LCR) remains high at 205.56 percent, reflecting a very adequate liquidity position.

From the aspect of asset quality, gross non-performing credit ratio (NPL) was recorded at 2.22 percent in June, and increased slightly to 2.28 percent in July.

Meanwhile, NPL net remained stable below 1 percent, which was 0.86 percent in June and 0.84 percent in July. Loan at Risk (LAR) also showed improvement, down to 9.73 percent in July from 9.86 percent in the previous month.

"Banking also has a strong capital pad, with CAR at a high level of 25.81 percent in July, down slightly from 25.88 percent in June. This is an important risk mitigation amid global uncertainty," he said.

Furthermore, he conveyed that the OJK also encourages banks to continue to expand financing to the MSME segment, especially for debtors who are significantly affected.

"OJK asks financial service institutions to provide special policies and schemes for MSMEs as debtors who are affected materially. Banks are also encouraged to provide relaxation of payments through restructuring," he added.

As part of efforts to increase transparency, he said that OJK had issued POJK No. 18 of 2025 concerning transparency of bank financial statements, as well as following up on SE OJK 1/September/2025 as an obligation to penetrate reporting. In addition, his party is also reviewing regulations related to inactive accounts.

"OJK urges banks not to block customer accounts, unless there are indications of suspicious financial transactions or criminal acts," he said.