Jakarta, CNBC Indonesia \u2014 The Financial Services Authority (OJK) has\naffirmed that the intermediation performance of domestic banking remains\nresilient and is growing positively, with a maintained risk profile amid\nglobal economic volatility that is driving surges in energy prices and\nincreasing market fluctuations.<\/p>\n
OJK\u2019s Executive Head of Banking Supervision, Dian Ediana Rae, stated\nthat in March 2026, credit grew by 9.49% year-on-year to Rp8,659.05\ntrillion, an increase from February 2026\u2019s 9.37% growth. This annual\ncredit expansion was contributed by state-owned commercial banks (BUMN),\nnational and foreign private commercial banks, as well as foreign bank\nbranches (KCBLN).<\/p>\n
Additionally, credit quality is maintained, with the Loan at Risk\n(LAR) ratio, gross Non-Performing Loan (NPL), and net NPL ratios\nstanding at 8.94%, 2.14%, and 0.83% respectively, improving from\nFebruary 2026 (9.24%, 2.17%, and 0.83%).<\/p>\n
On the funding side, third-party funds (DPK) grew by 13.55%\nyear-on-year to Rp10,230.81 trillion, up from 13.18% in February 2026,\nwith growth in current accounts, deposits, and savings at 21.37%, 8.36%,\nand 11.57% year-on-year respectively.<\/p>\n
In line with this, the banking loan-to-deposit ratio (LDR) in March\n2026 was 84.64%, slightly down from 84.72% in February 2026. This LDR\nratio indicates that the banking sector has sufficient liquidity room\nfor future credit disbursement.<\/p>\n
\u201cThis overall shows that the increased volatility in global markets\nremains a concern, but Indonesia\u2019s banking industry has strong\ncapitalisation and adequate liquidity to absorb potential future\npressures,\u201d said Dian in her statement on Wednesday (7\/5\/2026).<\/p>\n
The year-on-year credit growth of Rp750.64 trillion (9.49%) primarily\ncame from the construction sector at Rp181.98 trillion (46.67%),\nfollowed by the household sector at Rp103.83 trillion (5.56%), and the\nmanufacturing industry at Rp97.62 trillion (7.96%).<\/p>\n
Furthermore, based on credit usage types, investment credit (KI) grew\nby 20.85% year-on-year, followed by working capital credit (KMK) and\nconsumer credit (KK) at 4.38% and 5.88% respectively. By debtor\ncategory, corporate credit and SME credit grew by 14.88% and 0.12%\nyear-on-year respectively.<\/p>\n
SME Credit<\/p>\n
Dian stated that OJK and the government continue to strive to boost\nSME growth to achieve inclusive and sustainable national economic\ngrowth. One of OJK\u2019s policies to promote SME credit is the issuance of\nPOJK No.\u00a019 of 2025 on Ease of Access to Financing for Micro, Small, and\nMedium Enterprises (POJK SME).<\/p>\n
The issuance of this POJK SME aligns with the government\u2019s Asta Cita\nto increase employment, accelerate economic equality, and eradicate\npoverty as priority agendas. Through this POJK SME, OJK encourages banks\nto provide easy, accurate, fast, affordable, and inclusive access to SME\ncredit.<\/p>\n
Dian explained that SME credit shows signs of improvement, recording\npositive growth again after previous contraction. In March 2026, SME\ncredit totalled Rp1,498.64 trillion, expanding by 0.12% year-on-year\nwith a high NPL of 4.60%, amid pressures on public purchasing power and\ndomestic economic dynamics. This mini growth is an improvement from\nFebruary 2026\u2019s 0.56% contraction.<\/p>\n
This SME credit growth was contributed by micro and medium credit at\n0.20% and 0.90% year-on-year respectively, offsetting a 0.49% decline in\nsmall credit. The year-on-year SME credit growth mainly came from the\nagriculture, forestry, and fisheries sector at Rp11.91 trillion (4.20%);\nfollowed by financial and insurance activities at Rp8.10 trillion\n(65.40%); and accommodation and food services at Rp2.53 trillion\n(3.50%).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ojk-reveals-evidence-of-solid-performance-of-indonesian-banks-amid-global-challenges-1778158484", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }