FX.co ★ Indonesia Loan Growth Eases to 21-Month Low

In April 2025, the annual loan growth rate in Indonesia moderated to 8.88%, a decline from the previous month's 9.16%. This figure represents the slowest rate of increase since July 2023, influenced by diminishing consumer purchasing power and a contracting middle class. The growth in loans for consumption decreased to 8.97% from 9.32% in March, and working capital loans saw a deceleration to 4.62% from 6.51%. However, investment loans experienced a notable rise, accelerating to 15.86% from 13.36%. On a sectoral basis, the main drivers of credit growth were the industrial, transportation, and social services sectors, while the construction and trade sectors exhibited limited growth. The country's central bank anticipates overall lending growth to fall between 8% and 11% for the year.