FX.co ★ Indonesia Loan Growth Eases to 3-Month Low

In October 2025, Indonesia experienced a slowdown in its annual loan growth, which declined to 7.36% compared to September's 7.7%, a three-month peak. This represents the most sluggish growth since July, indicating weakened consumer purchasing power, a shrinking middle class, and heightened caution among banks with regard to extending credit. This caution is mirrored in the substantial volume of undisbursed loan facilities, totaling IDR 2,450.7 trillion in October 2025, or 22.9% of the total approved credit ceiling. Looking forward, Bank Indonesia anticipates that credit growth for the entirety of 2025 will fall at the lower end of its projected 8–11% range, with expectations for a more robust increase in 2026.