Indonesia's Financial Services Authority (OJK) assessed the financial services sector as stable, supported by solid industry fundamentals and domestic demand despite geopolitical uncertainty, rising global inflation and tighter monetary conditions. Market pressure was most visible in equities, with the Composite Stock Price Index falling 6.96% in September and 29.79% year to date, while foreign investors recorded net stock sales of IDR 10.24 trillion. OJK nevertheless described domestic capital market liquidity as manageable. Bank lending grew 13.65% year over year to IDR 9,178 trillion in August, led by investment and corporate credit. Banks maintained a 24.10% capital adequacy ratio and a 2.11% gross nonperforming loan ratio. Elsewhere, online lending increased 22.07% to IDR 106.94 trillion, although the aggregate 90-day default rate rose to 4.73%, while insurance solvency ratios remained above the 120% minimum. OJK reinstated auto-rejection limits and extended permission for share buybacks without shareholder approval through Dec. 31, 2026, while supporting the phased resumption of short selling and the stock exchange's reduction of the minimum share price to IDR 1. The review also records special treatment under OJK's disaster framework for borrowers affected by the East Nusa Tenggara earthquake, including simplified credit quality assessments for exposures up to IDR 10 billion, current classification for restructured financing and separate assessment of new financing. The relief covers eight regencies for up to three years from Sept. 28, 2026.

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