Deposits Become Mainstay for Third-Party Funds, Small Banks Raise Interest Rates

The Financial Services Authority (OJK) has observed an increase in savings interest rates at smaller banks. This movement is in line with overall industry trends and the recent hike in the benchmark interest rate by Bank Indonesia (BI).

“In general, third-party fund (DPK) interest rates at KBMI 1 and 2 banks have experienced a slight increase, but we see it as still within a reasonable range. It is in line with the DPK interest rates of the banking industry and the movement of the BI benchmark rate,” the OJK stated during a press conference on the results of the Financial System Stability Committee (KSSK) periodic meeting on Monday (3/7/2026).

For context, Bank Indonesia raised its benchmark interest rate by 100 basis points (bps) during the May–June 2026 period, from 4.75% to 5.75%.

Meanwhile, the OJK recorded that third-party funds (DPK) reached IDR 10,283 trillion, growing by 10.21% year-on-year (yoy) as of June 2026. In detail, current accounts grew by 9.9% yoy, savings accounts increased by 8.25% yoy, while deposits recorded the highest growth at 12.16% yoy.

On the other hand, the OJK assessed that the banking industry’s liquidity condition remains adequate. This is reflected in the loan-to-deposit ratio (LDR), which stood at 88.32% in June 2026. Furthermore, the ratio of liquid assets to non-core deposits (AL/NCD) was recorded at 101.9%, while the ratio of liquid assets to third-party funds (AL/DPK) reached 23.08%. Both ratios are well above the regulatory thresholds of 50% and 10%, respectively.

“Therefore, banking liquidity conditions in June 2026 remained adequate,” the OJK stated. In line with this, the banking industry’s capital position also remains strong. The OJK recorded the industry’s capital adequacy ratio (CAR) at 23.7% in June 2026, providing ample room for the industry to support future credit growth.