Indonesia's Financial Services Authority (OJK) released its Indonesia Banking Surveillance Report for Q2 2025, assessing the banking sector as solid with risks contained and intermediation strengthening through June 2025. The report highlights improving asset quality, adequate liquidity supported by liquidity buffers well above minimum requirements, and high capitalisation underpinning resilience and continued support for economic growth. OJK data through August 2025 show deposits (DPK) grew 8.51% year on year versus 7.56% credit growth, with gross non-performing loans stable at 2.28%. Liquidity indicators AL/NCD and AL/DPK were 120.25% above thresholds, the net open position ratio (PDN) stood at 1.19% against a 20% threshold, and the capital adequacy ratio was 26.03%, increasing mainly due to higher profits. OJK called on banks to maintain prudential practices, strengthen capital and keep CKPN coverage adequate, and to run routine stress tests and capital assessments while monitoring liquidity amid uncertainty and fast-moving global and domestic policy changes; the report also includes a thematic analysis on the strategic role of Indonesia’s four-wheel automotive industry.
OJK 2025-10-11
Indonesia's Financial Services Authority publishes Q2 2025 banking surveillance report showing 2.28% gross NPL and 26.03% capital ratio
Indonesia's Financial Services Authority (OJK) released its Q2 2025 Banking Surveillance Report, assessing the sector as solid with contained risks and strengthening intermediation. Asset quality improved, liquidity buffers exceeded minimum requirements, and capitalisation remained high, supporting economic growth. OJK urged banks to maintain prudential practices, strengthen capital, and conduct stress tests amid global and domestic policy changes.