Construction Credit Revival Drives Property Loan Growth in November 2025

Significant Improvement in Credit Growth

The property credit sector showed notable recovery in November 2025, with overall growth reaching 7.4% year-on-year, an improvement from the 5.0% recorded in the previous month. This positive trend was primarily driven by the construction loan segment, which grew by 8.1% yoy, marking a substantial turnaround from the 1.2% growth rate observed in November 2024.

Factors Behind the Growth

According to Trioksa Siahaan, Vice President of the Indonesian Banking Development Institute (LPPI), the increased activity in infrastructure construction projects towards the end of 2025 was a key factor contributing to this growth. The realization of government budgets near the end of the year typically leads to increased construction activity, which in turn boosts credit demand in the construction sector.

Banking Sector Implications

The revival in construction credit is particularly significant for banks as it indicates a broader recovery in the property sector. The stronger growth in construction loans suggests that banks are increasingly supporting infrastructure and property development projects, which could have positive multiplier effects on the overall economy.

Market Outlook

The positive momentum in property credit growth is expected to continue into the final month of 2025, supported by ongoing infrastructure projects and government spending. Banks are likely to maintain their focus on this segment, given the improved credit quality and growing demand for property and construction financing.