OJK Maintains Optimism on Credit Growth Through End-2025

Positive Outlook Despite Temporary Slowdown

The Financial Services Authority (OJK) remains confident that banking credit will continue to grow through the end of 2025. This optimism is based on the evaluation of banks' Business Plans (RBB) which showed no significant revisions. OJK's Head of Banking Supervision, Dian Ediana Rae, highlighted that despite pressure on credit demand, optimism about the recovery of various economic sectors and support from fiscal policy, trade regulations, industrial policy, and investment will boost the multiplier effect on household consumption and business investment.

Key Drivers of Credit Growth

Several factors are expected to drive credit growth through end-2025:

1. Improving monetary policy transmission
2. Declining lending rates
3. Acceleration of government spending/private investment
4. Seasonal household spending needs towards year-end

Current Credit Growth Statistics

As of September 2025, banking credit recorded a 7.70% year-on-year growth, up from 7.56% in the previous month. By type of credit:

• Investment Credit: 15.18% growth
• Consumer Credit: 7.42% growth
• Working Capital Credit: 3.37% growth

By economic sector, strong growth was observed in:

• Transportation and Warehousing: 19.32%
• Mining and Quarrying: 19.15%

Recent Developments and Challenges

Bank Indonesia reported that credit growth slowed to 7.36% YoY in October 2025 compared to the previous month. BI Governor Perry Warjiyo noted that credit growth needs to be boosted to support economic recovery, citing weak credit demand due to businesses' wait-and-see approach regarding expansion.

Market Implications

The OJK's optimistic outlook suggests continued support for economic growth through credit expansion, despite temporary slowdowns. The combination of monetary policy support and government initiatives is expected to maintain the positive trajectory of credit growth through year-end.