Banking Credit Rate Slows Down, Only Grows 8.88 Percent in April 2025

Jakarta – The Financial Services Authority (OJK) noted that in April 2025 banking credit grew even though it was observed to slow down, which amounted to 8.88 percent year on year (yoy) or to Rp7,960 trillion. This figure is lower than the previous month which grew 9.16 percent.

“Banking intermediation performance is stable with a maintained risk profile. In April 2025 credit growth grew by 8.88 percent yoy,” said Dian Ediana Rae, Chief Executive of OJK Banking Supervision, in a press conference, Monday, June 2, 2025.

Dian explained, based on the type of use, investment credit grew the highest, at 15.86 percent, followed by consumption credit at 8.97 percent and working capital credit at 4.62 percent.

Meanwhile, in terms of ownership, state-owned banks were the main drivers of credit growth, which amounted to 8.82 percent yoy.

Then, based on the category of debtors, corporate credit grew 12.77 percent. Meanwhile, MSME loans grew by 2.60 percent. Where small business loans grew the highest at 9.48 percent, amidst banking efforts that focus on restoring the quality of MSME loans.

In line with credit growth, third-party funds (DPK) in April 2025 were recorded to grow by 4.55 percent yoy to Rp9,047 trillion.

“With current accounts, savings, and deposits growing by 6.02 percent, 6.05 percent, and 2.07 percent yoy respectively,” Dian added.

Meanwhile, the liquidity of the banking industry in April 2025 remained adequate with the ratio of Liquid Tools/Non-Core Deposit (AL/NCD) and Liquid Tools/Third Party Funds (AL/DPK) at 111.32 and 25.23 percent, respectively.

“Still above the threshold of 50 percent and 10 percent respectively. The liquidity coverage ratio (LCR) was at 200.35 percent,” he concluded.

Meanwhile, credit quality is maintained with a gross NPL ratio of 2.24 percent and a net NPL of 0.83 percent. Then, for loan at risk (LAR) was relatively stable at 9.92 percent.

“Although it increased compared to the previous month, the LAR ratio decreased compared to the position in April 2024 and was still below the pre-pandemic level of 9.93 percent in December 2019,” said Dian.

The resilience of Indonesian banks in April 2025 remained strong. Reflected in the high banking capital (CAR) of 25.43 percent

“This is a strong risk mitigation cushion amid the current global uncertainty,” she added. (*)

Editor: Galih Pratama

Banking Credit Rate Slows Down, Only Grows 8.88 Percent in April 2025

Jakarta – The Financial Services Authority (OJK) noted that in April 2025 banking credit grew even though it was observed to slow down, which amounted to 8.88 percent year on year (yoy) or to Rp7,960 trillion. This figure is lower than the previous month which grew 9.16 percent.

“Banking intermediation performance is stable with a maintained risk profile. In April 2025 credit growth grew by 8.88 percent yoy,” said Dian Ediana Rae, Chief Executive of OJK Banking Supervision, in a press conference, Monday, June 2, 2025.

Dian explained, based on the type of use, investment credit grew the highest, at 15.86 percent, followed by consumption credit at 8.97 percent and working capital credit at 4.62 percent.

Meanwhile, in terms of ownership, state-owned banks were the main drivers of credit growth, which amounted to 8.82 percent yoy.

Then, based on the category of debtors, corporate credit grew 12.77 percent. Meanwhile, MSME loans grew by 2.60 percent. Where small business loans grew the highest at 9.48 percent, amidst banking efforts that focus on restoring the quality of MSME loans.

In line with credit growth, third-party funds (DPK) in April 2025 were recorded to grow by 4.55 percent yoy to Rp9,047 trillion.

“With current accounts, savings, and deposits growing by 6.02 percent, 6.05 percent, and 2.07 percent yoy respectively,” Dian added.

Meanwhile, the liquidity of the banking industry in April 2025 remained adequate with the ratio of Liquid Tools/Non-Core Deposit (AL/NCD) and Liquid Tools/Third Party Funds (AL/DPK) at 111.32 and 25.23 percent, respectively.

“Still above the threshold of 50 percent and 10 percent respectively. The liquidity coverage ratio (LCR) was at 200.35 percent,” he concluded.

Meanwhile, credit quality is maintained with a gross NPL ratio of 2.24 percent and a net NPL of 0.83 percent. Then, for loan at risk (LAR) was relatively stable at 9.92 percent.

“Although it increased compared to the previous month, the LAR ratio decreased compared to the position in April 2024 and was still below the pre-pandemic level of 9.93 percent in December 2019,” said Dian.

The resilience of Indonesian banks in April 2025 remained strong. Reflected in the high banking capital (CAR) of 25.43 percent

“This is a strong risk mitigation cushion amid the current global uncertainty,” she added. (*)

Editor: Galih Pratama