Indonesia Financial Services Authority (OJK) published the results of its fourth-quarter 2025 Banking Business Orientation Survey, showing respondents remain optimistic that banking performance will stay solid through the end of 2025. The survey, conducted in October 2025, covered 102 banks representing 99.25% of total commercial bank assets as of September 2025, and produced a Banking Business Orientation Index of 66, in the optimistic zone. Macro expectations returned to optimistic territory, with the Macroeconomic Conditions Expectations Index at 63, underpinned by expectations of stronger domestic growth alongside a lower Bank Indonesia policy rate and a strengthening rupiah, while inflation was also expected to rise with higher economic activity and holiday-related consumption. Perceived banking risks were also viewed as controlled, with a Risk Perception Index of 57 reflecting expectations of stable credit quality and a low Net Open Position, supported by a long foreign exchange position. Performance expectations remained elevated, with the Performance Expectations Index at 78, driven by anticipated credit growth and deposit (DPK) expansion; respondents highlighted manufacturing, mining and quarrying, and transportation and warehousing as key credit growth sectors, alongside broad confidence that 2025 bank business plan (RBB) targets for credit and deposits would be met.
OJK 2025-11-22
Indonesia Financial Services Authority survey indicates banks expect solid performance through end-2025
The Indonesia Financial Services Authority (OJK) released its Q4 2025 Banking Business Orientation Survey, indicating continued optimism for banking performance through year-end. The survey, covering 102 banks, showed a Banking Business Orientation Index of 66, with expectations of stronger domestic growth, a lower Bank Indonesia policy rate, and a strengthening rupiah. Key sectors for credit growth include manufacturing, mining, and transportation, with confidence in meeting 2025 bank business targets.