Indonesian Banking Sector Faces Headwinds in Meeting 2025 Targets

Sluggish Credit Growth

As of October 2025, Indonesia's banking sector recorded a 7.36% year-on-year credit growth, indicating a challenging environment for achieving annual targets. This slow growth is reflected in the performance of major banks, with only two out of ten large banks achieving double-digit credit growth: PT Bank Mandiri Tbk (11.08% YoY) and PT Bank Syariah Indonesia Tbk (13.01% YoY).

Mixed Profit Performance

The profit performance among major banks shows a mixed picture. While some banks managed to achieve double-digit profit growth - such as PT Bank Tabungan Negara Tbk (13.73% YoY) and PT Bank Danamon Indonesia Tbk (10.53% YoY) - others experienced significant declines. Notably, PT Bank Mandiri Tbk and PT Bank Negara Indonesia Tbk recorded profit decreases of 9.7% YoY and 6.35% YoY, respectively.

Challenges Ahead

The banking sector faces headwinds as it approaches the end of 2025. With credit growth remaining subdued and profit performance varying across institutions, banks must navigate these challenges to meet their year-end targets. The current trend suggests that achieving double-digit growth, as seen in previous years, will be particularly difficult for most banks.