Bank Mandiri Economist: Indonesia's Banking Sector Remains Very Solid

Jakarta (ANTARA) - Bank Mandiri Chief Economist Andry Asmoro stated that the condition of banking in Indonesia remains very solid. “Indeed, relatively and in general, the banking sector in Indonesia has no significant problems. So the condition of banking in Indonesia remains very solid,” he said during the Macro & Market Brief Q2-2026 Indonesia Economic Outlook in a virtual event in Jakarta on Monday. According to him, the banking sector is very vigilant in applying high prudence principles in maintaining asset quality. “Although the upward trend in non-performing loans (NPL) in the middle to lower segments is difficult to avoid due to global conditions, the current banking risk management system is said to be far better than previous crisis periods,” he stated. The banking sector is also said to be the main pillar in supporting national development priority programmes. Credit growth remains solid in the high single digits to low double digits. “I think this is a relatively balanced level between utilising the economic cycle and at the same time mitigating risks to future asset quality,” Andry explained. The solidity of Indonesia’s banking sector is also evidenced by the liquidity condition of the banks, which is at a very adequate level, for example, liquidity growth reaching 21.2 percent with asset quality maintained at 1 percent. Facing future challenges, the banking sector is said not only to rely on interest (interest rate return), but is starting to shift to commission-based income (fee-based income). According to him, with advancements in digital infrastructure, it is now increasingly reliable for achieving greater income from digital transaction bases.