Bank Indonesia: Indonesian Banking Sector Remains Resilient Amid Global Turbulence, Credit Growth Slows
JAKARTA — Bank Indonesia Governor Perry Warjiyo has affirmed that the fundamental strength of Indonesia’s national banking industry remains resilient in the face of global uncertainties stemming from conflict in the Middle East.
“Banking sector resilience remains strong, and is estimated to be able to mitigate risks from the impact of Middle East conflict,” Perry stated during a press conference for the March 2026 Board of Governors meeting on Tuesday (17 March 2026).
This condition is reflected in adequate liquidity, high capital reserves, and controlled credit risk. The banking sector’s Capital Adequacy Ratio (CAR) in January 2026 stood at 25.87 per cent, demonstrating strong capacity to absorb risks and support credit expansion.
Meanwhile, the Non-Performing Loan (NPL) ratio remained low at 2.14 per cent (gross) and 0.82 per cent (net). “Bank Indonesia’s stress test results demonstrate that banking sector resilience remains solid in confronting various global risks, supported by maintained corporate debt servicing capacity and profitability,” he explained.
Nevertheless, Perry revealed that banking sector credit growth has shown deceleration in early 2026. In February 2026, credit grew 9.37 per cent year-on-year, lower than January 2026’s 9.96 per cent and the end of 2025’s 9.69 per cent.
Based on usage, credit growth has continued to be supported by investment credit, working capital credit, and consumer credit, each growing 20.72 per cent, 3.88 per cent, and 6.34 per cent year-on-year respectively. However, these figures showed slight deceleration compared to the previous month.
Perry emphasised that credit growth still needs to be strengthened to support Indonesia’s economic growth momentum. Despite the slowdown, BI remains optimistic that credit disbursement throughout 2026 will remain within the target range of 8–12 per cent.
“Bank Indonesia estimates that 2026 credit growth will remain within the 8–12 per cent range, influenced by both demand and supply factors,” he said.