Indonesia's Financial Services Authority (OJK) published a press release in which Executive Head of Banking Supervision Dian Ediana Rae said the banking industry remains solid with positive growth. He attributed negative outlook revisions by international rating agencies on major Indonesian banks, including the state-owned bank group Himpunan Bank Milik Negara (Himbara), to the shift in Indonesia’s sovereign credit outlook from stable to negative and broader global macroeconomic dynamics rather than banks’ own fundamentals. System-wide indicators for January 2026 showed credit growth of 9.96% year on year alongside deposit (DPK) growth of 13.48% year on year, with non-performing loans at 2.14%. Capital and liquidity were described as strong, with a capital ratio of 25.87% and liquidity ratios of 121.23% (AL/NCD), 27.54% (AL/DPK) and 197.92% (Liquidity Coverage Ratio), all stated to be well above thresholds. For KBMI 4 banks and Himbara, OJK cited double-digit loan growth (13.34% and 13.43%) and deposit growth (16.32% and 16.38%), with capital adequacy ratios of 22.33% (KBMI 4) and 20.32% (Himbara) in January 2026; gross NPLs were reported in a range of under 1% to 3% with Loan at Risk controlled and supported by adequate provisioning. The release also noted that bank ratings remain investment grade, that outlook changes do not directly affect banks’ ability to access funding, and that funding is generally dominated by domestic deposits, limiting reliance on external sources. OJK said it will continue ongoing supervision to ensure prudent conduct, governance and risk management, and will coordinate with other members of the Financial System Stability Committee (KSSK) to maintain financial system stability. It also characterised the outlook adjustment as potentially temporary and reversible, with scope for future returns to stable or positive outlooks as global and domestic economic prospects and key fiscal and external indicators improve.
OJK 2026-03-25
Indonesia's Financial Services Authority says banking sector fundamentals remain solid despite negative rating outlook revisions
Indonesia's Financial Services Authority (OJK) reported that the banking industry remains solid with positive growth, despite negative outlook revisions by international rating agencies due to shifts in Indonesia’s sovereign credit outlook and global macroeconomic dynamics. January 2026 indicators showed robust credit and deposit growth, strong capital and liquidity ratios, and controlled non-performing loans. OJK will continue supervision to ensure prudent governance and risk management, coordinating with the Financial System Stability Committee to maintain stability.