The Indonesia Financial Services Authority said at its May monthly board meeting that financial sector stability remained intact despite higher global inflation, elevated sovereign yields and volatile capital flows to emerging markets. Banking intermediation and solvency stayed strong, while domestic market liquidity remained adequate even as equities corrected sharply and foreign investors were net sellers in both stocks and government bonds. Key banking indicators remained solid in April, with credit up 9.98 percent year on year to IDR 8,755 trillion, deposits up 11.39 percent to IDR 10,077 trillion, gross non-performing loans at 2.17 percent and the capital adequacy ratio at 23.97 percent after dividends. Insurance assets rose 3.39 percent year on year and risk based capital stayed well above the 120 percent minimum, finance company receivables grew 2.08 percent, and peer-to-peer lending outstanding rose 26.11 percent. In markets and digital assets, the Jakarta Composite Index fell 11.92 percent month on month in May, the authority licensed PT Luno Indonesia Ltd as a digital financial asset trader, rejected one other applicant, and instructed banks to conduct enhanced due diligence and or block about 33,836 accounts linked to online gambling. The authority also outlined several policy measures. To support the natural resource export proceeds regime, qualifying DHE SDA balances can be treated as cash collateral under bank asset quality rules and the funded portion secured by that collateral may be excluded from large exposure limit calculations if conditions are met. It also issued new rules that classify securities firms and investment managers by business capacity and raise minimum paid-up capital and adjusted net working capital requirements, alongside a conduct rule for parties providing financial sector information and an implementing rule for buy now pay later financing companies covering minimum borrower age and income, leverage limits and risk controls. Draft rules are being prepared for carbon exchange trading, housing secondary finance, insurance business plans and actuarial reports, and risk management for financial technology and digital asset providers.
OJK2026-06-05
Indonesia Financial Services Authority says financial sector stability held despite market volatility and adopts new capital markets and BNPL rules
The Indonesia Financial Services Authority reported that financial sector stability remained intact in May, with strong banking intermediation, solid capital and asset quality, and adequate liquidity despite equity market corrections and foreign outflows. It introduced measures to support the natural resource export proceeds regime, tightened capital and net working capital requirements for securities firms and investment managers, and issued new conduct and buy now pay later rules. The authority also licensed a new digital financial asset trader, ordered enhanced due diligence or blocking of accounts linked to online gambling, and is preparing draft rules on carbon exchange trading, housing secondary finance, insurance, and risk management.