OJK Maintains 2025 Bank Lending Growth Target at 9–11% Despite April Slowdown
Main Takeaways
|
Meta description:
Meta keywords:
JAKARTA, investortrust.id – Indonesia’s Financial Services Authority said it would maintain its projection for bank lending growth at 9–11% in 2025, despite signs of weakening momentum in recent months.
The forecast remains unchanged from the start of the year, according to OJK Chief Executive for Banking Supervision Dian Ediana Rae, who spoke at the regulator’s monthly financial sector assessment press conference on Monday, June 2.
“Credit growth remains in the 9–11% range, as projected earlier by OJK,” Dian said in the virtual briefing.
Bank credit growth slowed to 8.88% in April 2025, a significant drop from 13.09% in the same month last year, reflecting weaker-than-expected lending activity even after the central bank began cutting interest rates earlier this year.
No Major Revisions Yet, But Risks Remain
Dian noted that banks have not significantly revised their business plans during recent prudential meetings with OJK. However, they are allowed to adjust their targets by the end of September, depending on how the economic and financial conditions evolve.
“Banks may revise their business plans by September 2025 if needed, particularly if there are significant shifts in economic dynamics or industry performance,” he said.
Global Uncertainty Still a Concern
OJK is working closely with members of the Financial System Stability Committee (KSSK), which includes the central bank and other financial authorities, to mitigate risks from global volatility that may affect domestic economic recovery.
“We are actively monitoring how global uncertainty impacts both economic growth and the financial sector,” Dian added.
Bank Indonesia Forecasts Slightly Lower Economic Growth
Separately, Bank Indonesia (BI) estimated that 2025 bank credit growth will range between 8–11%, mirroring its GDP projection of 4.6–5.4%, slightly down from a previous forecast of 4.7–5.5%. BI cited April's credit growth figures and global developments as reasons for the downward revision.