October 27, 2025 | 07:16 pm
TEMPO.CO, Jakarta - Bank Indonesia (BI) has noted a rise in Non-Performing Loans (NPLs) stemming from consumer credit. Irman Robinson, BI Director for Macroprudential Policy, stated that the increase in NPL risks is aligning with the slowdown in overall consumer credit growth.
"What may concern us is certainly the non-performing loans in consumer credit, which also correlates with the slowdown in consumer credit, especially for housing loans (KPR) and motor vehicle loans (KKB)," Irman said during a journalist training session in Bukittinggi, West Sumatra, on Friday, October 24, 2025.
According to him, the consumer NPL rate, while still below 5 percent, shows an upward trend. "The NPL in consumer credit also appears to be below 5 percent, but the trend is increasing, which should be a concern for all of us," he noted.
Previously, Bank Indonesia recorded that banking credit in September 2025 grew by 7.70 percent annually (year-on-year/yoy), slightly higher than the 7.56 percent growth recorded in August 2025 (yoy).
BI is actively pushing for increased banking credit growth to support overall economic expansion. The demand for credit is not yet robust, primarily due to the wait-and-see attitude of businesses, internal financing optimization by corporations, and relatively high loan interest rates.
Growth in working capital credit and consumer credit has slowed to 3.37 percent and 7.42 percent, respectively. Conversely, investment credit growth has increased significantly to 15.18 percent.
Bank Indonesia estimates that credit growth throughout 2025 will fall at the lower end of the 8–11 percent range and anticipates an increase in 2026. BI promises to continually strengthen coordination with the government and the Financial System Stability Committee (KSSK) to boost banking credit or financing growth and improve the interest rate structure.
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