Banking - Consumption credit still slowing down, purchasing power not yet recovering equally

Banking - Consumption credit still slowing down, purchasing power not yet recovering equally The growth of consumer credit throughout 2025 shows a pattern similar to the pandemic period. The movement of each segment is uneven, reflecting the uneven recovery of people's purchasing power. Data from Bank Indonesia (BI) recorded that in December 2025, consumption credit only grew by 6.4% yoy, slowing down compared to 10.5% yoy in the previous year. This decline was mainly triggered by a correction in motor vehicle credit (KKB), which fell by 6.6% yoy. Two other segments are still growing, but at a slower pace. Home ownership credit (KPR) only increased by 6.8% yoy, while multipurpose credit grew by 7.7% yoy. A similar pattern occurred in 2020 during the pandemic. At that time, KKB plummeted 25.5% yoy and became the main pressure on consumer credit. Although KPR and multipurpose loans still grew by 3.6% yoy and 1.2% yoy respectively, total consumer credit still contracted by 1% yoy. (Source : Kontan)