Executive Summary

Key insights and market outlook

Indonesia's fintech lending industry saw 25.45% year-on-year growth in outstanding loans, reaching Rp 94.85 trillion by November 2025 ¹

⁶. Meanwhile, the banking sector recorded 7.74% credit growth to Rp 8,315 trillion, with investment credit growing 17.98% ⁴. The non-performing loan (NPL) ratio for fintech lending rose to 4.33%, while banks maintained a relatively stable NPL ratio of 2.21% ²⁴.

Full Analysis

02

Deep Dive Analysis

Indonesia's Financial Sector Shows Resilience Amid Mixed Growth Trends

Fintech Lending Continues Strong Growth

Indonesia's fintech lending industry maintained its robust growth trajectory, with outstanding loans reaching Rp 94.85 trillion by November 2025, representing a 25.45% year-on-year increase ¹

⁶. This growth was accompanied by a concerning rise in the non-performing loan ratio to 4.33% from 2.52% in November 2024 ². The significant growth in fintech lending highlights the sector's increasing importance in Indonesia's financial landscape.

Banking Sector Credit Growth Accelerates

The banking sector demonstrated positive growth trends, with total credit disbursement reaching Rp 8,315 trillion by November 2025, marking a 7.74% year-on-year growth ⁴

. Investment credit led this growth with a 17.98% increase, followed by consumption credit at 6.67%, while working capital credit grew by 2.04% ⁴. Third-party funds (DPK) also showed strong growth, rising by 12.03% to Rp 9,899 trillion.

Asset Quality and Risk Management

The non-performing loan (NPL) ratio for banks remained relatively stable at 2.21% gross and 0.86% net, indicating effective risk management ⁴

. In contrast, the fintech lending sector saw a significant increase in credit risk, with the TWP90 ratio rising to 4.33% ³. The Loan at Risk (LaR) ratio for banks decreased to 9.22%, suggesting improved credit quality ⁴.

Corporate Credit Demand and Banking Intermediation

The demand for corporate credit remained strong, driven by needs for cash flow management, business restructuring, and expansion plans ³

. Major banks like Bank Mandiri (BMRI) and Bank Central Asia (BBCA) reported significant corporate credit growth of 12% and 10.4%, respectively ³. This trend underscores the banking sector's crucial role in supporting corporate activities and overall economic growth.

References