Bank of Indonesia published its Banking Survey for the second quarter of 2025, showing that new loan disbursements increased, accelerating from the first quarter but moderating compared with the same period a year earlier. The survey recorded a Weighted Net Balance (WNB) of 85.22% in Q2 2025 (up from 55.07% in Q1 2025 and down from 89.11% in Q2 2024), with growth driven mainly by working capital and investment loans. Respondents expect disbursements to continue growing in Q3 2025, with a projected WNB of 81.71%. Lending standards were reported as more cautious than in the first quarter, reflected by a positive Lending Standards Index (LSI) of 0.08, primarily affecting credit lines, premium charges, collateral requirements and documentation requirements. For Q3 2025, respondents expect standards to be broadly unchanged (LSI 0.02) and remain optimistic about credit growth through the end of 2025, citing a favourable monetary and economic outlook and relatively well mitigated lending risks.
Bank of Indonesia 2025-07-23
Bank of Indonesia banking survey reports higher new loan disbursements in Q2 2025 and slightly tighter lending standards
Bank of Indonesia's Q2 2025 Banking Survey indicates an increase in new loan disbursements, with a Weighted Net Balance (WNB) of 85.22%, driven by working capital and investment loans. Lending standards were more cautious, with a Lending Standards Index (LSI) of 0.08, affecting credit lines and collateral requirements. Respondents anticipate continued credit growth in Q3 2025, supported by a favorable economic outlook and mitigated lending risks.