The Indonesia Financial Services Authority’s third-quarter 2026 Banking Business Orientation Survey found that banks remained optimistic about performance and their ability to manage risks despite heightened global and domestic economic uncertainty. The composite Banking Business Orientation Index stood at 56, above the 50-point threshold for optimism. The survey covered 99 banks representing 97.91% of commercial banking assets as of June 2026. The Performance Expectations Index reached 83, reflecting expected credit growth supported by stronger demand and existing lending pipelines. Manufacturing credit, a major component of bank lending, grew 16.85% year over year in July. The Risk Perception Index was 57, with respondents expecting credit quality and liquidity to remain controlled, net foreign exchange positions to stay low and deposits to grow faster than lending, increasing banks’ net cash flow. Banks nevertheless remained highly alert to potentially prolonged global pressures, including expected increases in inflation and global benchmark interest rates.
2026-09-10OJK
Indonesia Financial Services Authority survey finds banks remain optimistic for third quarter, business orientation index at 56
The Indonesia Financial Services Authority’s third-quarter 2026 survey found banks remained optimistic, with the Banking Business Orientation Index at 56 and the Performance Expectations Index at 83. Respondents expected continued credit and deposit growth while maintaining credit quality and liquidity, although they remained alert to prolonged global uncertainty and higher inflation and interest rates.