Bank lending to the infrastructure sector may grow in 2025
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Kontan Online - Kredit perbankan ke sektor infrastruktur berpotensi tumbuh di 2025
28 January 2025
By Heru Febrianto
Bank lending to the infrastructure sector is anticipated to increase in 2025 under the administration of Prabowo-Gibran.
According to the HSBC Global Private Banking (HSBC GPB) report, Indonesia's economy in 2025 is forecasted to benefit from a blend of infrastructure development, export diversification, and robust domestic consumption. A key factor in this positive outlook is the government's sustainable policy.
The fiscal deficit is projected to remain below 3% of the Gross Domestic Product (GDP), enabling the government to sustain infrastructure spending and social welfare programmes
In 2025, the government's programme, led by the Public Works Ministry through the Public Works and Housing Infrastructure Financing Directorate General, aims to implement the public-private partnership (PPP) scheme for 34 projects in the public works and housing sector.
There are plans for 14 PPP projects in the water resources sector, 10 in the organisation sector, and 3 in the housing sector. Additionally, the government's three million houses programme has the potential to boost construction lending, including infrastructure
For instance, in 2024, PT Bank Central Asia Tbk (BCA) disbursed loans worth Rp39 trillion to the construction sector, including infrastructure. This amount represents an 11.5% year-on-year (YoY) growth.
"Regarding infrastructure loans, BCA is committed to prudently supporting the sector's development, carefully considering both domestic and global macroeconomic dynamics," revealed Hera F. Haryn, BCA Corporate Communication and Social Responsibility EVP, to Kontan recently.
Therefore, Hera mentioned that BCA will continue to maintain a balance between liquidity sufficiency and healthy loan expansion, taking into consideration market conditions and risks.
Besides BCA, PT Bank Negara Indonesia Tbk (BNI) distributed infrastructure loans worth Rp55.5 trillion last year, reflecting a 1.9% YoY growth
According to BNI's 2024 report presentation, the loan composition to the infrastructure sector accounted for 9% of BNI's total loans last year.
Meanwhile, the loan quality, or the non-performing infrastructure loan ratio, stood at 0.8% as of December 2024.
BNI Finance Director Novita Widya Anggraini revealed that BNI's intermediation grew positively and in a balanced manner, in line with the national economic recovery.
This resulted in BNI's loan growth increasing by 11.6% YoY to Rp775.87 trillion in 2024 "Even though our assets are strong, BNI remains cautious and aims to grow conservatively on a global scale," stated Novita.
Meanwhile, PT Bank Danamon Indonesia Tbk (Danamon) forecasts growth opportunities in the infrastructure sector in 2025, aligned with BI's benchmark interest rate reduction and the government's various priority programmes.
"We are optimistic that the government's policies in the infrastructure sector will boost Indonesia's economic growth, create new jobs, and offer direct benefits to people across the country," stated Danamon Risk Management Director Dadi Budiana to Kontan.
Furthermore, he mentioned that, regarding loan distribution, Danamon will always prioritise caution to ensure its loan quality is maintained, alongside its business growth.
In 2025, Danamon is targeting double-digit loan growth by implementing cautious policies and ensuring asset quality.
This growth target aligns with Bank Indonesia's loan growth target for 2025, which is approximately 11%-13%.
Meanwhile, to support overall loan growth in 2025, Danamon will continue to optimise the MUFG Group ecosystem and its four main business lines: Enterprise Banking & Financial Institution, Small Medium Enterprise (SME), Consumer Banking, and Adira Finance.
To maintain loan quality, Danamon will always prioritise its cautious principles and recovery processes when distributing loans to customers. This ensures that Danamon's non-performing loans remain at a healthy level.
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