FX.co ★ Indonesia Loan Growth Hits 5-Month High

In November 2025, Indonesia's annual loan growth experienced a slight uptick, reaching 7.74% year-on-year, compared to October's three-month low of 7.36%. This represents the most rapid growth since June, reflecting the government's initiatives to stimulate domestic demand. Nonetheless, the undisbursed loan facilities remained substantial, amounting to IDR 2,509.5 trillion in October 2025, which is 23.21% of the total approved credit ceiling. According to Perry Warjiyo, Governor of Bank Indonesia, "Credit demand appears weak due to businesses adopting a wait-and-see approach, corporations optimizing their internal financing, and a slow reduction in lending rates." Looking forward, Bank Indonesia projects that credit growth for the year 2025 will likely fall at the lower end of its target range of 8-11%, with expectations for more robust growth in 2026.