Indonesia's Credit Card Market Shows Slowing Growth Amid Digital Shift

Economic Context and Transaction Trends

Indonesia's credit card transaction growth showed signs of slowing in the third quarter of 2025 as the financial landscape continues to evolve with digital payment solutions gaining popularity. Despite this slowdown, the credit card industry remains a significant contributor to the national economy. According to recent data from Bank Indonesia, the volume of credit card transactions reached 42.96 million, representing a 10.57% year-over-year increase. The total transaction value amounted to Rp 37.18 trillion, marking a 3.08% year-over-year growth.

Macroeconomic Performance

The overall economic performance during Q3 2025 showed positive growth, with Indonesia's GDP expanding by 5.04% year-over-year and 1.43% quarter-over-quarter. BPS (Statistics Indonesia) attributed this growth to various factors including increased online trading activity and the rising use of digital financial instruments such as debit cards, credit cards, and electronic money.

Digital Payment Landscape

The shift towards digital payment methods is reshaping Indonesia's financial transaction landscape. While credit card transactions are still growing, their pace has moderated as consumers increasingly adopt alternative digital payment solutions. This transition reflects broader global trends where digital payment methods are becoming preferred due to their convenience and efficiency.

Industry Implications

The credit card industry continues to play a vital role in Indonesia's financial ecosystem. Despite the slowing growth rate, the absolute numbers indicate continued consumer trust in credit card usage. Financial institutions are likely to focus on enhancing their digital capabilities to remain competitive in this evolving payment landscape.