Indonesia's Financial Services Authority published a press release stating that banking fundamentals and intermediation remain intact despite geopolitical tensions, higher oil prices and a stronger US dollar that have increased global financial market and emerging market exchange rate volatility. It said banking liquidity is ample, direct foreign exchange risk is contained, and the recent rise in foreign currency deposits remains within a normal range. In April 2026, total deposits grew 11.39 percent year on year, with rupiah deposits up 11.49 percent and foreign currency deposits up 10.87 percent. Rupiah deposit growth was driven by current accounts, savings and time deposits, while foreign currency growth was strongest in savings and time deposits. Deposit accounts reached 667,169,152, up 7.22 percent year on year and still dominated by rupiah accounts. Since early 2026, the foreign currency share of total deposits has increased but remained relatively stable at around 15 percent to 16 percent, mainly through time deposits as large banks offer competitive foreign currency rates, including as an incentive for exporters to keep funds onshore. Liquidity indicators remained above thresholds, with the loan to deposit ratio at 86.88 percent and liquid assets to non-core deposits and to third-party funds at 111.13 percent and 25.39 percent, against thresholds of 50 percent and 10 percent for the latter two ratios. Banks' net open foreign exchange positions also remained well below the 20 percent of capital cap, indicating limited immediate impact from rupiah weakness, although the authority said it is monitoring possible second-round effects from imported and cost-push inflation as oil prices rise. OJK will continue monitoring and coordinate policy and public communications with Bank Indonesia, the Indonesia Deposit Insurance Corporation and the Ministry of Finance through the Financial System Stability Committee.
OJK2026-05-22
Indonesia Financial Services Authority says banking fundamentals remain sound as foreign currency deposits stay at 15 percent to 16 percent of total
Indonesia’s Financial Services Authority said banking fundamentals and intermediation remain intact, with ample liquidity and limited direct foreign exchange risk despite global volatility. Deposit growth stayed robust, foreign currency deposits held at about 15–16 percent, and key liquidity and net open FX position indicators stayed above regulatory thresholds. OJK will monitor second-round effects from rupiah weakness and higher oil prices and coordinate policy and communications with Bank Indonesia and other Financial System Stability Committee members.