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View all search resultsBank loan growth inches up, but not in consumer, MSME segments
Credit growth rose 7.74 percent year-on-year (yoy) to Rp 8.3 quadrillion (US$493 billion) in November, accelerating from growth of 7.36 percent yoy in October, according to the Financial Services Authority (OJK).
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A shopper browses health products at a Hypermart branch in Jakarta on March 26, 2023. (JP/Nurhayati/Adi)
T
he banking industry recorded slightly stronger loan growth in November, but not across all segments, as credit disbursement to consumers as well as to micro, small and medium enterprises (MSMEs) rose at a slower pace.
Overall credit growth rose 7.74 percent year-on-year (yoy) to Rp 8.3 quadrillion (US$493 billion) in November, accelerating from 7.36 percent yoy growth registered in October, according to the Financial Services Authority (OJK).
“The OJK has noted that there was a significant increase in credit growth toward the end of the year. The intermediation performance until the end of 2025 is expected to be increasingly solid, with credit growth projected to exceed the lower end of the set target [range],” the OJK’s chief executive for banking supervision, Dian Ediana Rae, told reporters at a virtual press conference on Friday.
The institution had a loan growth target of 9 to 11 percent for 2025.
Despite faster overall lending growth seen in November, only investment credit recorded an acceleration, rising to 17.98 percent yoy in November, up from 15.72 percent yoy in October.
Meanwhile, the growth in working capital and consumer credit issuance slowed in November to 2.04 percent yoy (down from 2.39 percent yoy in October) and to 6.67 percent (down from 7.03 percent yoy), respectively.
“In terms of the debtor categories, corporate credit grew by 12 percent yoy, while MSME credit continues to face considerable challenges and remains in contraction,” Dian said, without disclosing the exact figure.
