Indonesian Banking Credit Growth Slows While Investment Loans Surge

Mixed Performance in Banking Lending

The Indonesian banking sector showed mixed results in credit growth as of October 2025. Overall banking credit growth slowed to 6.9% year-on-year from 7.2% in the previous month, reaching a total of Rp 8,106.8 trillion. Despite this slowdown, investment loans demonstrated strong performance, growing at 15.0% YoY compared to 14.4% in September.

Investment Loans Drive Positive Trend

The investment loan segment reached Rp 2,335.0 trillion, showing continued market confidence in long-term economic prospects. This growth indicates that businesses remain optimistic about Indonesia's economic stability and are investing in expansion plans. The acceleration from 14.4% to 15.0% YoY suggests that investment activities are gaining momentum as the year ends.

Economic Implications

The divergence between overall credit growth and investment loan growth highlights the nuanced nature of Indonesia's current economic landscape. While general lending has slowed, likely due to cautious consumer behavior, investment lending tells a different story of business confidence and long-term planning. This trend is particularly significant as it indicates that despite short-term economic hesitancy, businesses are betting on Indonesia's long-term growth potential.