The Indonesian banking sector is actively discussing its strategy for the coming year, with a projected credit growth target set between 8% and 12%. This ambitious forecast comes as financial institutions weigh various economic factors and regulatory directives.
Henry Widjaja, Chief of Commercial Banking at PT Bank Permata Tbk. (BNLI), indicated that the company’s loan growth targets would closely mirror market trends. He emphasized that a bank cannot afford to lag significantly behind overall market growth, as doing so could undermine its competitive standing. “We will operate in alignment with the industry’s trajectory,” Henry affirmed during an interview at Wisma Bisnis Indonesia, Central Jakarta, on Tuesday, December 2, 2025.
Widjaja further elaborated that several factors are expected to influence credit growth next year, with the primary challenge stemming from the demand side. He noted that the demand for financing from industry players is intrinsically linked to broader economic developments. Consequently, the need for credit, fund mobilization, and the sale of financial products are anticipated to grow in tandem with overall business activity. Given these dynamics, Bank Permata plans to exercise prudence in its loan disbursement strategies. “We cannot be overly aggressive. We will proceed cautiously, aligning with product requirements,” he explained.
Meanwhile, Batara Sianturi, CEO of Citi Indonesia, expressed a more optimistic outlook, believing that banking credit growth could surpass expectations next year. His optimism is fueled by anticipated government incentives and the prospect of a downward trend in global and domestic interest rates. Sianturi highlighted that various incentives and a loosening of monetary policy could effectively stimulate credit demand. “That’s the key message that needs to be underscored. The environment next year will be more conducive because we anticipate a lower interest rate setting,” Batara remarked after attending the Annual Bank Indonesia Meeting (PTBI) 2025 in Central Jakarta on Friday, November 28, 2025.
Echoing these sentiments, Bank Indonesia Governor Perry Warjiyo, in his address, expressed a desire for even higher credit growth, reiterating the 8%-12% target for the upcoming year. To achieve this, the central bank is committed to maintaining accommodative macroprudential policies throughout 2026. Perry announced that Bank Indonesia would provide macroprudential liquidity incentives to banks that demonstrate a proactive approach in reducing their interest rates. “Loose macroprudential policies will be reinforced in 2026 to further boost banking credit,” Perry stated during the PTBI 2025 event.
Summary
The Indonesian banking sector is targeting 8-12% credit growth for the upcoming year, with various financial institutions outlining their strategies. PT Bank Permata Tbk. plans to align its loan growth with market trends and proceed cautiously, acknowledging that demand is the primary challenge tied to broader economic developments. Conversely, Citi Indonesia expresses optimism, expecting credit growth to surpass expectations due to anticipated government incentives and lower interest rates.
Bank Indonesia Governor Perry Warjiyo reiterates the 8-12% target, desiring even higher growth, and commits to accommodative macroprudential policies throughout 2026. BI will provide liquidity incentives to banks proactively reducing interest rates, aiming to further boost credit. This regulatory support, alongside a potentially lower interest rate setting, is expected to foster a more conducive environment for stimulating credit demand.
