Indonesia's Financial System Stability Committee published a joint statement assessing financial system stability as maintained in the third quarter of 2025, supporting domestic growth while remaining alert to global trade and geopolitical risks. The release summarises macro-financial conditions and the latest coordinated policy actions by the government, Bank Indonesia (BI), the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS). Against elevated global uncertainty and a 25 basis point Federal Funds Rate cut in October 2025 to 3.75%–4.00%, the statement notes strengthening Indonesian growth momentum, with full-year 2025 growth projected up to 5.2% and fourth-quarter growth expected to exceed 5.5% year on year supported by IDR 34.2 trillion in stimulus. External buffers and price stability were described as intact, with foreign exchange reserves at USD 148.7 billion at end-September 2025, the rupiah at IDR 16,630 per USD on 31 October 2025, and CPI inflation at 2.65% year on year in September and 2.86% in October. BI highlighted continued easing and stabilisation measures, including BI-Rate reductions to 4.75% by September 2025, ongoing foreign exchange intervention and secondary-market government securities purchases totalling IDR 269.97 trillion by 30 October 2025, and a strengthened performance-based Macroprudential Liquidity Incentive effective 1 December 2025 with a maximum incentive of 5.5% of deposits linked to lending and loan-rate pass-through commitments in priority sectors. OJK flagged new regulations to ease access to financing for micro, small and medium-sized enterprises, new requirements for commercial banks’ account management to reduce fraud and misuse of inactive and dormant accounts, clarification that the Financial Information Service System (SLIK) should not be the sole basis for creditworthiness assessment, and bank blocking of around 25,912 accounts linked to online gambling based on government data; it also reported banking credit growth of 7.70% year on year with gross non-performing loans at 2.24% and capital adequacy at 26.15%, alongside 28 licensed entities in the crypto-asset trading ecosystem and 1,416 tradable crypto assets. The committee scheduled its next regular meeting for January 2026, and the member institutions committed to complete implementing regulations mandated by the Financial Sector Development and Strengthening Law (UU P2SK) with stakeholder involvement.
OJK 2025-11-03
Indonesia's Financial System Stability Committee reports Q3 2025 stability and sets out coordinated policy measures across BI OJK and LPS
Indonesia's Financial System Stability Committee reported maintained financial stability in Q3 2025, with growth projected up to 5.2% for the year, supported by IDR 34.2 trillion in stimulus. Bank Indonesia implemented easing measures, including BI-Rate reductions and foreign exchange interventions, while the Financial Services Authority introduced regulations to enhance financing access for micro, small, and medium enterprises. The committee plans to finalize regulations under the Financial Sector Development and Strengthening Law by January 2026.