Kepri’s banking sector records robust growth in assets, credit, and deposits in 2025

Kepulauan Riau (Kepri) has emerged as the fastest-growing banking hub in Sumatra, with stellar performance across all financial indicators in the first half of 2025.

Kepri Leads Economic Expansion

The Otoritas Jasa Keuangan (OJK) reported that Kepri achieved 7.14% economic growth in the first half of 2025, the highest in Sumatra. This momentum was reinforced by the banking sector, where credit expanded by 12.26%—well above the national rate of 7.77%. Head of OJK Kepri, Sinar Danandjaya, emphasized that the achievement reflects growing public trust and the banking industry’s strong contribution to regional development.

Robust Growth in Conventional and Syariah Banking

Commercial banks, both conventional and syariah, posted total assets of Rp167.4 trillion (S$13.39 billion), an 11.34% year-on-year (yoy) increase, outpacing the national average of 6.43%. Third-party funds (DPK) rose 10.73% to Rp98.46 trillion, while total credit distribution surged to Rp57.58 trillion. Non-performing loans (NPL) improved to 3.31% from 3.84% in 2024, signaling healthier portfolios.

Support for Small Businesses

A notable highlight was credit expansion to small and medium enterprises (SMEs/UMKM), which reached Rp14.39 trillion—up 14.6% yoy. OJK noted this as evidence of banks channeling more resources into productive sectors. For syariah institutions, SME financing grew 30.62% to Rp1.33 trillion, supported by low non-performing financing (NPF) of only 1.30%, well below the national average of 2.24%.

BPR and BPRS Maintain Strong Momentum

People’s Economy Banks (BPR/S) also delivered impressive growth, with assets up 14.22% to Rp12.69 trillion and credit distribution rising nearly 20% to Rp10.27 trillion. Their NPL stood at 6.42%, far healthier than the national level of 12.73%. Meanwhile, syariah-based BPRS recorded a 24.91% jump in assets to Rp366 billion, DPK growth of 24.29%, and financing expansion of 19.15%. With an NPF of 7.05%, BPRS Kepri outperformed national averages and reinforced its role in local economic empowerment.

Stability and Public Confidence

OJK concluded that Kepri’s financial sector outpaced national benchmarks in nearly all categories, demonstrating strong resilience and effective risk management. The alignment of asset growth, deposit expansion, and credit distribution underscored robust financial stability. “This growth shows public trust in Kepri’s banking industry is strengthening,” said Sinar on September 29, 2025.

Outlook for Inclusive Growth

Looking ahead, OJK urged banks to further expand financing in priority sectors, especially SMEs, while enhancing consumer protection and financial literacy. These initiatives are expected to sustain inclusive and sustainable growth, cementing Kepri’s position as a financial growth center in western Indonesia.

Kepri’s banking sector has proven to be a driving force behind the province’s economic momentum, surpassing national averages in both conventional and syariah segments. With strong growth in SME financing, improved credit quality, and rising public trust, Kepri is setting a benchmark for regional financial performance. The results hold important lessons for Indonesians and Singaporeans alike, as economic integration in the Riau region gains renewed momentum.

Sources: Batam Today (2025) , RRI (2025)

Keywords: Banking Growth, Kepulauan Riau, Economic Performance, OJK Kepri, Financial Sector, Credit Expansion