BI Governor: Banking Resilience Strong to Mitigate War Impacts

Jakarta (ANTARA) - Bank Indonesia Governor Perry Warjiyo emphasised that the national banking resilience remains strong to mitigate risks from the impact of the war in the Middle East.

This development is marked by adequate banking liquidity, well-maintained high capital capacity, and persistently low credit risk,” he stated during the Announcement of the April 2026 Board of Governors Meeting (RDG), held virtually in Jakarta on Wednesday.

The banking Capital Adequacy Ratio (CAR) in February 2026 was recorded at a high 25.83%, considered strong in absorbing risks and supporting credit growth.

For the banking Non-Performing Loan (NPL) ratio, it remained low in aggregate at 2.17% (gross) and 0.83% (net) in February 2026.

Bank Indonesia’s stress test results indicate that banking resilience remains strong in facing various risks, including spillover effects from global turmoil due to the Middle East war, supported by maintained corporate repayment ability and profitability.

“Bank Indonesia continues to strengthen macroprudential policies and policy synergy with the Financial System Stability Committee (KSSK) to help maintain financial system stability,” said Perry Warjiyo.

On that occasion, he also noted that bank credit in March 2026 grew by 9.49% year-on-year (yoy), higher than the 9.37% yoy growth in February 2026.

Based on usage groups, he continued, this development was supported by investment credit, working capital credit, and consumer credit, which grew by 20.85% yoy, 4.38% yoy, and 5.88% yoy respectively in March 2026.

His side projects credit growth for 2026 to remain within the 8-12% range, influenced by both demand and supply sides.

From the demand side, the utilisation of bank financing is said to still be able to be increased, particularly by optimising undisbursed loans that are still substantial, amounting to Rp2,527.46 trillion or 22.59% of the available credit ceiling.

From the supply side, bank financing capacity remains adequate, supported by the Liquid Assets to Third-Party Funds Ratio (AL/DPK) of 27.85% and third-party funds (DPK) that continue to grow high at 13.55% yoy in March 2026.

“Going forward, Bank Indonesia will continue to strengthen banking funding capacity, including the development of non-traditional funding instruments (non-DPK) to support bank credit disbursement,” said the BI Governor.