Indonesia’s Banking Credit Expands 7.7% to Rp 8,163 Trillion, Fintech Lending Surges 22%, OJK Reports
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JAKARTA, Investortrust.id — Indonesia’s financial intermediation remains solid as banking credit grows 7.7 percent year on year to Rp 8,163 trillion and fintech lending accelerates 22.16 percent, reflecting sustained momentum in both conventional and digital financing, according to the Financial Services Authority.
Chief Executive of Banking Supervision at the Financial Services Authority (OJK) Dian Ediana Rae said bank intermediation performance has remained stable with manageable risk profiles and well-functioning operations across the sector.
“The intermediation performance of our banking system is stable, with sound risk management and optimal operations in providing financial services to the public. In September 2025, credit grew by 7.70 percent year on year,” Dian said during the OJK Board of Commissioners’ monthly meeting on Friday, Nov. 7, 2025.
Bank lending rose from 7.56 percent in August, signaling improved corporate demand and consumer spending. Investment credit recorded the fastest growth at 15.18 percent, followed by consumer loans at 7.42 percent and working capital loans at 3.37 percent. Corporate credit expanded 11.53 percent, while small and medium enterprise (SME) credit edged up 0.23 percent.
Third-party funds also grew strongly by 11.18 percent year on year, reaching Rp 9,695 trillion, up from 8.51 percent in August. Liquidity across the banking system remained sufficient, with the ratio of liquid assets to non-core deposits at 130.47 percent and to total third-party funds at 29.30 percent—well above regulatory thresholds of 50 percent and 10 percent respectively. The liquidity coverage ratio stood at a robust 205.94 percent.
Dian added that banking resilience also remained strong, supported by solid capitalization. “Capital adequacy ratio reached a high level of 26.15 percent in September, slightly up from 26.03 percent in August,” he said.
Loan quality was still under control, with gross non-performing loans (NPL) at 2.24 percent and net NPL at 0.87 percent. The loan-at-risk ratio stood at 9.52 percent, indicating that asset quality pressures remained limited amid stable macroeconomic conditions.
He noted that Bank Indonesia’s benchmark interest rate has remained at 4.75 percent, followed by a moderation in lending rates across banks. “Compared to a year earlier, the average lending rate in rupiah declined by 50 basis points for investment credit and by 41 basis points for working capital loans,” Dian said.
Deposit rates also eased, with the weighted average interest on third-party funds down by 11 basis points to 2.89 percent, driven by lower deposit rates of 4.96 percent in September from 5.24 percent in August.
Meanwhile, OJK’s Head of Non-Bank Financial Institutions Supervision, Agusman, reported a strong rise in peer-to-peer (P2P) digital lending, underscoring the increasing role of fintech in financial inclusion.
“The outstanding fintech lending balance grew by 22.16 percent year on year, reaching Rp 90.99 trillion as of September 2025. This reflects robust demand for digital financing among consumers and businesses,” Agusman said during the same briefing.
He noted that credit risk in the sector remained manageable, with the aggregate default rate, or 90-day delinquency (TWP90), at 2.82 percent. OJK continued to monitor the sector closely to ensure growth is accompanied by prudent risk management.
Beyond fintech, total financing by multifinance companies rose 1.07 percent year on year to Rp 507.14 trillion, driven mainly by a 10.61 percent increase in working capital financing. The industry’s non-performing financing ratio was contained at 2.47 percent gross and 0.84 percent net.
Agusman also highlighted that a small portion of market participants still fall short of minimum capital requirements. “Currently, three of 145 finance companies and eight of 95 fintech lenders have yet to meet their respective minimum equity obligations of Rp 100 billion and Rp 12.5 billion. All of them have submitted action plans to OJK to fulfill these requirements,” he said.
The combined performance underscores Indonesia’s ongoing shift toward a more diversified financial ecosystem, where strong banking intermediation and expanding digital lending jointly support economic growth amid a steady monetary policy environment.