Banking Stability Maintained Amid War, OJK Reveals Potential for Banks to Upgrade to KBMI IV
REPUBLIKA.CO.ID, JAKARTA – The Financial Services Authority (OJK) has signalled that two to three KBMI III banks have the potential to upgrade to KBMI IV this year. However, OJK has not yet disclosed which specific banks are in question.
“Possibly this year, if I estimate, around two or three banks will upgrade to KBMI IV,” said the Executive Head of OJK Banking Supervision, Dian Ediana Rae, when met at the Supreme Court in Jakarta on Wednesday (25/3/2026).
When asked about the optimism for adding KBMI IV banks amid geopolitical tensions between Iran and the United States (US), Dian explained that several banks have actually submitted applications for the upgrade.
According to her, the capital positions of these banks are already close to the KBMI IV threshold, requiring only a slight increase to enter that group.
“The figures (capital indicators) are just a little short of entering KBMI IV,” said Dian.
She added that OJK continues to encourage such upgrades because KBMI IV banks are considered more sustainable and have a greater driving force on the economy.
Regarding the impact of the war, Dian assessed that the overall financial system stability is still maintained and believes the effects will not be as significant as previous crises like the COVID-19 pandemic.
Nevertheless, she stressed the need for banking industry vigilance by preparing anticipatory steps, including possible policy reviews if global conditions deteriorate.
In addition, OJK has also asked banks to treat global volatility as an early warning to prepare for the worst-case scenarios.
“Of course, we do not expect this (war) to be prolonged, because if we look at various international analyses, they indicate that this war is not just targeting one country; it is like hitting the world economy,” said Dian.
For information, banks in the KBMI III group are those with core capital above Rp 14 trillion up to Rp 70 trillion. Meanwhile, banks entering KBMI IV must have core capital above Rp 70 trillion.
Last year, OJK targeted six banks to shift from KBMI III to KBMI IV within the next two to three years.
“We hope that in the next 2-3 years, there will be an additional six banks shifting from KBMI III to KBMI IV. That means we expect banks with capital above Rp 70 trillion within two years to shift from BUKU III to BUKU IV,” said Dian during a press conference for the Annual Meeting of the Financial Services Industry (PITJK) 2025 on 11 February 2025.
Referring to data from the Indonesian Banking Statistics published by OJK as of June 2025, there are four banks in the KBMI IV category and 14 banks in the KBMI III category.
As of June 2025, KBMI III banks recorded core capital (tier 1) of Rp 445.08 trillion, with a core capital ratio to total risk-weighted assets of 23.19 percent. The capital adequacy ratio (CAR) stood at 24.53 percent.
Profitability performance is reflected in a return on assets (ROA) of 1.72 percent. Meanwhile, operational efficiency, measured by the ratio of operational costs to operational income (BOPO), was recorded at 86.41 percent.
From the intermediation and liquidity side, the net interest margin (NIM) was 3.58 percent, the loan to deposit ratio (LDR) was 90.89 percent, and the liquid assets ratio (LAR) was 12.13 percent.