Annual loan growth in Indonesia increased slightly to 7.56% in August 2025, up from 7.03% in July, which had marked the slowest pace since March 2022. The modest uptick occurred amid continued caution among banks in extending credit, alongside persistently high loan interest rates. This has contributed to a substantial volume of undisbursed loan facilities. As of August 2025, the undisbursed loan ratio stood at IDR 2,372.11 trillion, representing 22.71% of the available credit ceiling. Despite these challenges, Bank Indonesia maintains its forecast that overall lending growth will remain within the 8% to 11% range for 2025.