Banking - Credit slows down

Banking - Credit slows down Bank Indonesia (BI) recorded a continuous slowdown in banking credit growth. In June 2025, bank credit only grew by 7.77% yoy, a decrease compared to the growth of 8.43% yoy in May 2025. The realization of this credit growth was observed to be increasingly lower than the target of 8-11% by the end of 2025. BI Governor Perry Warjiyo said that banking credit needs to be continuously increased to support economic growth. "Banking credit in June 2025 grew by 7.77% yoy, a decrease compared to the growth of 8.43% yoy in May 2025," said Perry in the RDG, Wednesday, July 16, 2025. From the supply side, Perry said, the development of banking credit is influenced by the cautious behavior of banks in extending credit, amid DPK growing to 6.96% yoy in June 2025. (Source : Info Bank) Comment : In summary, the consistent slowdown in banking credit growth in Indonesia during the first half of 2025 is a concern. While investment credit shows some resilience, working capital and particularly MSME credit are growing at significantly slower rates. BI and OJK are committed to implementing accommodative policies and coordinating with other stakeholders to stimulate credit growth and ensure the financial sector continues to support national economic development. The challenge lies in addressing the underlying factors that contribute to banks' cautiousness and boosting overall economic demand for credit.