Indonesia banks apply tighter lending standards in Q2 2025

Respondents are optimistic regarding credit growth until end-2025.

Banks in Indonesia applied more cautious lending standards in the second quarter of 2025 compared with the previous quarter, according to a survey by the Bank Indonesia (BI).

Respondents expect lending standards to remain relatively unchanged in the third quarter, the central bank said in the survey results published on 23 July 2025. Respondents are selected from over 40 commercial banks covering about 80% of the total national banking assets.

Respondents indicated that they remain optimistic on credit growth moving forward until end-2025. This is reportedly driven by a promising monetary and economic outlook, as well as relatively well mitigate risk when disbursing loans, amongst others, the BI said.