Bank Credit Growth Stalls Despite Rp200 Trillion State Funds

Bank credit grew only 7.7 % year‑on‑year in September 2025, similar to the 7.56 % increase recorded in August. The modest rise comes despite the government placing Rp200 trillion in five state‑owned banks. The injection boosted banks’ third‑party funds by 11.18 % YoY.

Bank Indonesia Governor Perry Warjiyo said credit demand remains weak as businesses adopt a “wait and see” stance, rely on internal financing, and face relatively high loan rates. Undisbursed loans stood at Rp2,374.8 trillion in September, representing 22.54 % of the available credit ceiling. To stimulate lending, BI will strengthen its liquidity incentive policy.

Deputy Governor Juda Agung announced that a new macro‑prudential liquidity incentive (KLM) rule will be issued in December 2025, targeting priority sectors outlined in the President’s Asta Cita. The measure aims to accelerate the transmission of policy‑rate cuts to bank loan rates. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id).