Undisbursed Loans Surge as Credit Growth Slows in Indonesia

Significant Increase in Unutilized Credit Facilities

The Indonesian banking sector witnessed a substantial rise in undisbursed loans (kredit nganggur) reaching Rp2,509.4 trillion by November 2025 ¹

³

Source 3

https://finansial.bisnis.com/read/20251221/90/1938510/jurus-purbaya-belum-bikin-performa-kredit-melesat-kredit-nganggur-justru-menggunung

. This figure represents 23.18% of the total available credit, indicating a significant portion of approved credit facilities remaining unutilized. The trend shows a steady increase from Rp2,372 trillion in August 2025 to Rp2,450 trillion in October 2025, and finally to Rp2,509.4 trillion in November 2025 ¹

Source 1

https://finansial.bisnis.com/read/20251221/90/1938479/ojk-buka-suara-soal-kredit-nganggur-yang-meningkat-sentuh-rp2500-triliun

.

Regulatory Perspective and Economic Implications

The Otoritas Jasa Keuangan (OJK) views the high level of undisbursed loans as an indication of potential future credit growth. According to Dian Ediana Rae, Head of Banking Supervision at OJK, this phenomenon suggests that there is still room for credit expansion in the future ¹

. The OJK believes that if economic conditions improve and business confidence increases, these undisbursed loans could be drawn down, thereby boosting real sector growth.

Credit Growth Trends and Challenges

Despite the potential indicated by undisbursed loans, actual credit growth has shown signs of slowing. Bank Indonesia (BI) reported that credit growth decelerated to 7.74% year-on-year (YoY) in November 2025, up from 7.36% in the previous month but still below expectations ³

. The slowdown in credit growth is attributed to both weak demand and cautious lending practices. Factors contributing to this include the wait-and-see attitude among businesses regarding economic prospects and the slow pace of lending rate reductions ⁴

Source 4

https://keuangan.kontan.co.id/news/permintaan-masih-lesu-pertumbuhan-kredit-korporasi-tertahan-di-akhir-tahun

.

Economic Context and Future Outlook

The economic environment remains challenging, with both global and domestic uncertainties affecting credit demand. The Manufacturing PMI improved to 53.50 in November 2025 from 51.20 in October 2025, indicating expanding manufacturing activity ¹

. Additionally, the Consumer Confidence Index rose to 124.03 in November 2025 from 121.22 in October 2025, reflecting improved consumer sentiment ¹

Source 1

https://finansial.bisnis.com/read/20251221/90/1938479/ojk-buka-suara-soal-kredit-nganggur-yang-meningkat-sentuh-rp2500-triliun

.

Regulatory Measures and Industry Response

In response to these developments, the OJK is encouraging banks to strengthen their capital and consider consolidation to enhance their resilience and competitiveness. For 2026, the OJK projects that banking growth will remain positive, with credit growth expected to slightly increase ²

.