Shadowing Practice: ECONOMIC OUTLOOK | 2025 BANKING PERFORMANCE & PROSPECT FOR 2026 - Learn English Speaking with Video

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We'll continue now with news from the banking industry in Indonesia.

Bank credit growth in Indonesia slowed again in October 2025 amid global economic uncertainties, leading businesses to adopt a wait -and -see approach.

Here are the highlights of the national banking industry as of October this year.

The Financial Services Authority, or OJK,

recorded the loan growth declining to 7 .36 % in October from 7 .7 % the previous month,

reaching 8 ,220 trillion rupiah, about $498 billion.

U .S.

dollars.

OJK Chief Executive for Banking Supervision Dian Adriana Ray said in a press conference recently

that investment credit become the main driver during the period,

increasing by 15 .72%, higher than 15 .18 % in September.

Meanwhile, consumer loan growth fell to 7 .03 % from 7 .42 % the previous month.

Working capital credit experienced grid pressure rising only 2 .39 % lower than September's growth of 3 .37%.

Among borrowers, the OJCA recorded solid corporate credit growth of 11 .02%,

while Micro, Small, and Medium Enterprises credit experienced a slight contraction of 0 .11%.

On the funding side, third -party funds recorded growth of 11 .48%,

higher than September's 11 .18%, with total funds held at 9 ,756 .6 trillion rupiah.

From a risk perspective, credit quality was maintained with a gross non -performing loan or NPL ratio of 2 .25%,

a slight increase from 2 .24 % from the previous month.

The loan -at -risk position actually improved, falling to 9 .41 % from 9 .52 % in September.

The banking industry remains resilient, with the capital advocacy ratio reaching 26 .38%,

an increase from 26 .15 % in September.

Bank Mandiri, Bank Rakyat Indonesia,

Bank Sentral Asia, and Bank Negara Indonesia leading in assets and market presence with other significant players including

Bank Sariah Indonesia, CIMB Niaga, and OCBC, and ISPs serving diverse retail,

corporate, and digital banking needs.

Meanwhile, Bank Indonesia considers that business actors are still adopting a wait -and -see approach

while corporations are relying on internal financing

while lending rates remain relatively high in a recent statement bang indonesia stated

that undisbursed loans remain quite substantial reaching 2450 .7 trillion rupiah

or 22 .97 of the total credit ceiling indicating suboptimal credit

absorption on the other hand banks capacity to disburse credit remains adequate,

driven by the liquidity ratio to third -party funds,

which rose to 29 .47 % and deposit growth of 11 .48 % in October 2025.

However, according to BAE, banking interest in disbursing credit is actually quite good.

This is reflected in increasingly relaxed lending requirements.

Although requirements for consumer and MSME loans remain stringent due to the high risk in these segments,

this situation has further depressed MSME credit growth falling to minus 0 .11 % year -on -year.

Baye estimates that credit growth in 2025 will be at the lower end of the 8 %

and 11 % target and will increase in 2026.

Going forward, Bank Indonesia will continue to strengthen coordination with the government

and the Financial Systems Stability Committee to encourage credit growth and improve the interest rate structure," BEI stated.

Amidst the slowdown in credit distribution, BEI assesses that the resilience of the banking sector remains solid.

Thank you.

The Indonesian banking industry continues to show solid performance this year.

Although loan growth slightly declines amid moderate economic growth and global uncertainties, but we're also going to discuss more because joining us today,

Bapak David Sumwal, Chief Economist at Bank Central Asia, will share his insights on the performance of the national banking industry this year and,

more importantly, its prospects for next year.

Hello, good day, Pak David.

Welcome to Economic Outlook.

Hello, good day, Siska.

Thank you so much for making time to join us.

Now that we are approaching the end of year, this is the perfect opportunity to do somewhat of an assessment of the banking industry,

of the highlights, and also what makes it successful and what can be done to make it better in the next year.

Let's go over the factors one by one, Pak David starting with the credit growth

that declined to 7 .36 % in October based on the report of the Financial Authority Agency.

This compared to 7 .7 % in the same month last year.

Now, Badafit, what are the factors causing this decline?

Actually, we have already here the number in November.

The November's number actually 7 .7%.

So basically, in the last three months, hovering around 7 .3 % to 7 .7%.

So it's relatively moderate traded growth in late of 2025.

The problem is actually in the demand side.

So the corporates continue to adopt wait -and -see stance yeah in the yeah during the year

so basically because of the uncertainty so the global growth also weakening lately

and also we see a soft consumer demand yeah especially in the first half of this year

and there is also a shift in financing sources actually in corporations towards self -financing

so basically they try to use their uh retained earnings yeah

so it's also reflected in the decline in working capital

so the number in october only 2 .4 percent so keeps declining

and we see also some corporates also shifting their financing to stock market

so the growth of corporate bond is quite amazing this year so right now we see the number until november around 58%.

So 200 trillion of new corporate bonds issuance in 2025.

And basically on the supply side most of the banks also remain cautious particularly for the SME.

So we see the SME non -performing loan also getting higher right now around 4 .5 % in November.

So that's why the SME credit growth is declining,

only around 0 .5%, 0 .6 % of credit growth in October, Siska.

Okay.

Pak David, you mentioned about many entrepreneurs are still taking a wait -and -see approach

when it comes to taking out new credit.

And this is due to a lot of factors, including global uncertainties.

How long do you think this will go on?

Will this proceed all the way to 2026?

If so, how long do you think this will be the trend?

Basically, it seems to me that most of them, they are still cautious due to the global economic uncertainty.

Because perhaps, you know, in April, President Trump announced the tariff for all the countries in the world.

And also, lately, in the second half of this year, the commodity prices are still declining

so uh basically in the first half of this year we we see consumer confidence also weakening

and so uh recently actually uh uh it's quite encouraging lately

because uh according to the big data yeah uh the consumer spending start to accelerate yeah

that's a very good news and actually the corporate balance sheet is still strong.

That's why we may see some catalysts next year,

particularly coming from the declining of the benchmark rates.

So BI and also the global central banks, they will continue to reduce rates next year.

This will be a good catalyst for credit growth next year.

And there is also global government liquidity injection into the state -owned banks recently,

and also some macroprudential policy from the central bank.

So the central bank gives incentive policy in December 2025,

and it is expected to support further adjustment also in the lending rates.

100

So combined with the ongoing economic recovery,

101

these measures, I anticipate, will gradually support the rebound of credit growth going forward, Siska.

102

Okay, Pak David, we also have obtained information that in contrast of the declining of credit growth,

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third -party fund growth is quite high at 11 .48%, meaning there are a large amount of funds that are not disbursed.

104

Now, what do you think is the impact on bank financial performance, especially when it comes to profit margin?

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Yeah, that's correct.

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We see a growing of third -party fund.

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And some of the high growth actually has been driven by the recent liquidity injection by the Ministry of Finance

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so around $276 trillion into the state -owned enterprise banks,

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so through the deposit -on -call arrangement.

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And the other factors, actually, is an accelerated of the government spending starting in July, August this year.

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So we have a strong growth in third -party funds, but the credit expansion actually getting slower.

112

So we have excess liquidity.

113

So this will be very tough for the bank's profit margins actually.

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So that's why the excess liquidity so far has been funneled to some instruments

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which have lower yield compared to the credit disbursements or credit as a whole.

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and but recently the bank indonesia has a new policy so

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so bank indonesia right

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now provide incentives policy by providing also remuneration around 3 .5 percent for bank banks excess reserve

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so uh i hope this may help offset also the uh the cost the funding cost increasing funding costs,

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and also supports banks' financial performance going ahead.

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And we also hope that the credit demands gradually recover next year.

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All right, Pak David, I have one last question before I let you go.

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How do you see the prospect for the national banking industry in 2026?

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And are you optimistic that economic growth will reach 6 % as predicted by Finance Minister Purbaya Yudi Sadewa?

125

Go ahead, Pak David it?

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Yeah, I see the global interest rates are still trending down, especially in advanced economies next year.

127

And this will also give additional easing policy space for Bank Indonesia to cut rates next year.

128

And I think there are some things

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that will support credit growth next year first the dovish monetary

130

stance of the bank indonesia second the impact of the macro prudential liquidity incentive

131

that i hope will start to kick in and thirdly we also hope

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that the government's policy orientation that's still pro -economic growth will also give us so conducive environment for banks' performance next year.

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And we have some international trade arrangements lately, particularly with the European Union.

134

And we hope also our exports are also getting better next year.

135

And at the same time, we'll hope also the SME segments are also getting better.

136

Right now it's still a key concern for the banking sector because of the economic shocks lately.

137

The credit growth is really small for the SME segment, and we hope that next year will be better for SME.

138

All right, Bapak David Sumual, Chief Economist at Bank Central Asia.

139

Thank you so much for sharing with us your time and your insights.

140

We appreciate it.

141

Thank you, Siska.

142

Thank you.

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122 sentences

Vocabulary and speaking notes for this lesson

This speaking lesson is built on the video “ECONOMIC OUTLOOK”. The speaker keeps coming back to these words: growth, credit, bank, indonesia, banking. This video has 142 sentences and 1671 words to shadow. The speech runs for 14:33. The speaker talks at a steady 115 words per minute, a comfortable pace for shadowing. 82% of the words are among the 3,000 most common in English; the rest is worth studying before you start.

Key vocabulary in this video

15 words from the video worth learning, with pronunciation and meaning:

Word	Pronunciation	Meaning
decline verb	/dɪˈklaɪn/	To move downwards, to fall, to drop.
lately adverb	/ˈleɪt.li/	Recently; not long ago; of late; not long since.
uncertainty noun	/ʌnˈsɜːtənti/	Doubt; the condition of being uncertain or without conviction.
ratio noun	/ˈɹeɪ.ʃoʊ/	A number representing a comparison between two named things.
segment noun	/ˈsɛɡmɛnt/	A length of some object.
excess noun	/ˈɛksɛs/	The state of surpassing or going beyond a limit; the state of being beyond sufficiency, necessity, or duty; more than what is usual or proper.
adopt verb	/əˈdɑpt/	To take voluntarily (a child of other parents) to be in the place of, or as, one's own child.
incentive noun	/ɪnˈsɛntɪv/	Something that motivates, rouses, or encourages.
lend verb	/ˈlɛnd/	To allow to be used by someone temporarily, on condition that it or its equivalent will be returned.
meanwhile adverb	/ˈmiːnwaɪl/	During the time that something is happening, often specifically in a different place.
compare verb	/kəmˈpɛɚ/	To assess the similarities and differences between two or more things [“to compare X with Y”]. Having made the comparison of X with Y, one might have found it…
encourage verb	/ɪnˈkʌɹ.ɪd͡ʒ/	To mentally support; to motivate, give courage, hope or spirit.
reflect verb	/ɹɪˈflɛkt/	To bend back (light, etc.) from a surface.
margin noun	/ˈmɑɹ.d͡ʒɪn/	The edge of the paper, typically left blank when printing but sometimes used for annotations etc.
moderate adjective	/ˈmɑdəɹət/	Not excessive; acting in moderation.

Phrasal verbs you will hear

Word	Pronunciation	Meaning
go ahead verb	/ˌɡoʊ əˈhɛd/	To proceed with; to begin.
going forward adverb		In the immediate future and beyond.
go over verb		To look at carefully; to scrutinize; to analyze.
take out verb		To remove.

Grammar in this video

The structures the speaker uses most, with the exact words from the video:

Structure	In the video
Passive voice be + past participle — the focus is on what happens, not who does it	was maintained · is reflected · can be done
Present perfect have/has + past participle — a past action that still matters now	have obtained · has been driven · has been funneled

Pronunciation to watch

The speaker uses 3 contractions and reduced forms, such as we'll, we're. Say them the short way, as you hear them.

The “th” sounds: strengthen /ˈstɹɛŋ(k)θən/, thirdly /ˈθɚdli/
The “sh” and “zh” sounds: ratio /ˈɹeɪ.ʃoʊ/, injection /ɪnˈd͡ʒɛk.ʃən/, cautious /ˈkɔːʃəs/, contrast /kənˈt(ʃ)ɹæst/, shock /ʃɔk/
Long words — get the stress right: uncertainty /ʌnˈsɜːtənti/, accelerate /ɪkˈsɛl.əˌɹeɪt/, monetary /ˈmʌnɪtəɹi/, importantly /ɪmˈpɔɹ.tənt.li/, orientation /ˌɔː.ɹi.ənˈteɪ.ʃən/

How to practise with this video

Listen to the whole video once without speaking and note the words you do not know.
Shadow it sentence by sentence at normal speed, repeating each one until your rhythm matches the speaker.
Record yourself and compare with the original, paying attention to words like decline, lately, uncertainty.

What is the Shadowing Technique?

Shadowing is a science-backed language learning technique originally developed for professional interpreter training and popularized by polyglot Dr. Alexander Arguelles. The method is simple but powerful: you listen to native English audio and immediately repeat it out loud — like a shadow following the speaker with just a 1–2 second delay. Unlike passive listening or grammar drills, shadowing forces your brain and mouth muscles to simultaneously process and reproduce real speech patterns. Research shows it significantly improves pronunciation accuracy, intonation, rhythm, connected speech, listening comprehension, and speaking fluency — making it one of the most effective methods for IELTS Speaking preparation and real-world English communication.

Shadowing technique: read the full step-by-step guide →

Shadowing Practice: ECONOMIC OUTLOOK | 2025 BANKING PERFORMANCE & PROSPECT FOR 2026 - Learn English Speaking with Video

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