Bank Indonesia’s Banking Survey reported that new loan distribution in Q2 2025 rose compared to Q1 2025.

The Weighted Net Balance (SBT) for new credit demand stood at 85.22%, higher than 55.07% recorded in the previous quarter. However, this figure was slightly lower than the 89.11% SBT in Q2 2024.

The increase in new credit distribution was mainly driven by Working Capital Loans and Investment Loans.

Lending Standards Show Cautious Shift

During Q2 2025, banks applied more cautious credit standards. This was reflected in a positive Lending Standard Index (ILS) of 0.08.

The tighter approach included adjustments in credit limits, risk premiums, collateral, and administrative requirements.

In Q3 2025, the credit standard is expected to remain relatively unchanged, with the ILS projected at 0.02.

Loan Growth Expected to Continue in Q3 2025

The survey forecasts continued growth in new loan distribution in Q3 2025, with an SBT estimate of 81.71%.

Respondents also anticipate that credit outstanding will grow through the end of 2025.

This expectation is supported by the positive outlook on economic and monetary conditions and the manageable credit risk environment.

PHOTO: BANK INDONESIA

This article was created with AI assistance.