Indonesia's Financial Services Authority (OJK) issued a statement reaffirming that Indonesia’s banking sector remains in solid condition with positive growth, after international rating agencies including Moody’s and Fitch revised the outlook on major Indonesian banks, including the state-owned bank group Himbara, to negative. OJK’s head of banking supervision, Dian Ediana Rae, linked the outlook revisions primarily to the change in Indonesia’s sovereign credit outlook from stable to negative rather than to bank-specific fundamentals. OJK highlighted January 2026 credit growth of 9.96% year on year alongside 13.48% year-on-year growth in customer deposits (DPK), with non-performing loans at 2.14%, capital at 25.87%, and liquidity ratios well above thresholds (AL/NCD 121.23%, AL/DPK 27.54%, and liquidity coverage ratio 197.92%). For KBMI 4 banks and Himbara, credit growth was 13.34% and 13.43% respectively, with deposit growth of 16.32% and 16.38%; capital ratios were reported at 22.33% for KBMI 4 and 20.32% for Himbara, while gross NPLs were described as ranging below 1% to 3% and loan-at-risk remaining controlled with adequate provisioning. The release also noted that these banks remain rated investment grade and that the sector’s funding structure is largely domestic-deposit based, limiting reliance on external funding. OJK characterised the negative outlook adjustments as potentially temporary and reversible, and said it will continue ongoing supervision and coordinate with other Financial System Stability Committee (KSSK) stakeholders to safeguard financial system stability.
OJK 2026-03-25
Indonesia's Financial Services Authority says banking fundamentals remain solid despite Moody’s and Fitch negative outlook revisions
Indonesia’s Financial Services Authority (OJK) reaffirmed that the banking sector remains solid with positive growth, despite Moody’s and Fitch revising the outlook on major Indonesian banks, including Himbara, to negative after the sovereign outlook change. OJK cited January 2026 credit growth of 9.96% year on year, deposit growth of 13.48%, non-performing loans of 2.14%, strong capital and liquidity ratios, and predominantly domestic deposit-based funding, and called the outlook changes potentially temporary while pledging continued close supervision and coordination with Financial System Stability Committee stakeholders.