SEAToday.com, Jakarta - Chief Executive of Banking Supervision at the Financial Services Authority (OJK) Dian Ediana Rae believes that 9-11% bank credit growth in 2025 is realistically achievable.

"In 2025, we can say that we are in an optimistic situation, or perhaps more accurately, cautiously optimistic. Therefore, if we look at credit growth, for example, the target has been raised to between 9-11 percent. This means that the growth target is still expected to be in double digits," said Dian in Jakarta, as quoted by Antara on Wednesday. 

Earlier in December 2024, banking credit distribution reached Rp7,827 trillion, growing 10.39 percent year on year (YoY), down from 10.79 percent in November 2024. 

As the projection for Indonesia’s economic growth is expected to remain quite strong, the banking sector is expected to maximize this domestic market condition. 

Dian believes that domestic business opportunities for banks are still widely open, especially with government priority programs such as housing procurement, downstreaming, the growth of SMEs, and the free nutritious food program (MBG).

However, the success in seizing opportunities depends on each bank's risk levels. While globally U.S. interest rate cuts are expected to be less aggressive, there is hope for a reduction in domestic interest rates, which could lower the cost of funds.

Regarding public fund collection, OJK estimates that third-party funds (DPK) in the banking industry will grow by around 6 to 8 percent this year.

Writer: Andi Raisa Malaha Thambas