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

According to Asian Banking and Finance, the central bank noted that respondents expect lending standards to remain broadly unchanged in the third quarter.

The survey, published on 23 July 2025, gathered responses from over 40 commercial banks, representing approximately 80% of total national banking assets.

Despite the more measured approach, respondents expressed continued optimism about credit growth through to the end of 2025.

This sentiment is reportedly supported by a favourable monetary and economic outlook, alongside relatively well-managed lending risks, BI said.

Featured image credit: Edited by Fintech News Indonesia, based on image by WDNLD via Freepik