Indonesia’s annual loan growth eased to 7.36% year-on-year in October 2025, down from September’s three-month high of 7.7%. This marked the lowest growth since July, reflecting weakening purchasing power, a contracting middle class, and greater caution among banks in extending credit. This trend is evident in the substantial volume of undisbursed loan facilities, which reached IDR 2,450.7 trillion in October 2025, equivalent to 22.9% of the total approved credit ceiling. Looking ahead, Bank Indonesia expects full-year 2025 credit growth to come in at the lower end of its 8–11% target range, with a stronger pickup anticipated in 2026.