Savings crunch may stall loan growth

Liquidity strain: An bank employee counting rupiah in Jakarta. Bank Mandiri targets loan growth of 10 to 12% this year while aiming to lower its LDR to around 90%. — AFP

JAKARTA: Indonesian banks may struggle to maintain fast loan growth this year as their customers’ savings fail to keep pace, impacting financing for businesses and individuals.

Analysts believe local lenders need to tweak their strategies for 2025 by slowing down loan growth to keep liquidity within healthy bounds.