Indonesian Consumer Credit Growth Moderates Amid Economic Challenges

Slowing Credit Growth Across Major Categories

Indonesian consumer credit growth has moderated significantly, reaching 7.42% year-on-year in September 2025, down from 10.7% in the same period last year ¹

. This slowdown reflects broader economic trends, particularly the moderation in household consumption and limited purchasing power. The Financial Services Authority (OJK) reported that the growth deceleration was most pronounced in two major consumer credit categories: Housing Loans (KPR) and Auto Loans (KKB). KPR growth slowed to 7.26% in September 2025, down from 10.89% the previous year, while KKB growth contracted further to 0.72% from 9.00% ¹

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https://keuangan.kontan.co.id/news/perbankan-optimistis-nataru-akan-dongkrak-penyaluran-kredit-konsumer-pada-akhir-2025

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Divergent Trends in Consumer Financing

Despite the overall moderation in traditional credit products, certain segments continue to show robust growth. The Buy Now Pay Later (BNPL) category demonstrated particularly strong performance, growing by 25.49% to reach Rp24.86 trillion in outstanding loans. While this segment remains relatively small compared to overall consumer credit, its rapid growth highlights shifting consumer behavior and the increasing importance of digital financial products ¹

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Regulatory Perspective and Future Outlook

OJK Executive Director Dian Ediana Rae noted that the moderation in consumer credit growth is closely tied to broader economic factors, including household consumption patterns and overall economic activity. The regulator remains cautiously optimistic about potential growth catalysts for the remainder of 2025 and into early 2026. Key factors that could stimulate credit growth include improving monetary policy transmission, declining lending rates, and increased government and private investment ¹

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Market Data and Trends

Bank Indonesia's data for October 2025 showed continued moderation in consumer credit growth, with overall credit growth slowing to 6.9% year-on-year. The breakdown showed KPR growing at 6.8%, down from 7.2% the previous month, while auto loans actually contracted by 2.1% compared to the previous year's growth of 0.7% ²

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