Jakarta. Bank Indonesia reported that banking credit growth slowed to single digits at the end of 2025, reflecting moderating demand even as monetary conditions eased and liquidity remained ample.

Total bank lending expanded 9.69% year on year in December 2025, up from 7.74% in November and within the central bank’s target range. For the full year, credit growth reached 9.96%, staying inside Bank Indonesia’s projected range of 8–11%, Governor Perry Warjiyo said on Wednesday during a virtual press briefing following the January policy meeting.

While the pace marked an improvement from the previous month, it confirmed a trend of deceleration compared with earlier years, when credit growth consistently exceeded 10%. Lending growth stood at 10.39% in 2024, 10.38% in 2023, and peaked at 11.35% in 2022 as the economy rebounded from the Covid-19 downturn.  Looking ahead,Perry said lending growth in 2026 is expected to pick up slightly, remaining within a projected range of 8–12%.

Perry said the 2025 outcome was shaped by a mixed lending performance across segments. Investment loans recorded robust growth of 21.06% year on year, reflecting continued spending on capital projects. By contrast, working capital loans rose a more modest 4.52%, while consumer lending increased 6.58%.

“These developments are in line with Bank Indonesia’s efforts to lower interest rates and strengthen macroprudential liquidity incentives, as well as the implementation of government priority programs amid stable macroeconomic and financial conditions,” Perry said.

From the demand side, the central bank stated that businesses remain cautious about expansion, despite ample access to financing. Undisbursed loans — approved credit facilities that have not yet been drawn down — remained high at Rp 2,439.2 trillion ($144 billion) in December, equivalent to 22.12% of total available credit ceilings.

On the supply side, banks’ lending capacity stayed strong. The ratio of liquid assets to third-party funds stood at 28.57%, while deposits grew 13.83% year on year in December, providing a solid funding base.

Bank Indonesia also observed an easing in lending standards, signaling improved appetite among banks to extend credit. However, requirements remained relatively tight for consumer loans and lending to micro, small and medium enterprises, reflecting elevated credit risks in those segments.