Financial Services Industry Performance in West Java Remains Solid
The Financial Services Authority (OJK) of West Java has reported that the financial services sector in the province maintained robust performance through the first quarter of 2026, showing resilience amidst global and national economic dynamics. The banking sector exhibited positive year-on-year growth across several key indicators, including total assets, third-party funds (DPK), and credit, with growth rates of 5.93 per cent, 9.17 per cent, and 1.39 per cent respectively as of March 2026.
Despite high economic pressures, the sector has maintained stability, reflecting strong public trust in the banking industry. The credit risk, reflected by the Non-Performing Loan (NPL) ratio, remains within manageable thresholds at 3.44 per cent. The intermediation function, evidenced by a Loan to Deposit Ratio (L/DR) of 135.27 per cent, indicates that credit distributed to the public exceeds the funds collected.
As of March 2026, credit distribution based on project locations in West Java reached IDR 1,047 trillion, a 1.39 per cent year-on-year increase. West Java’s market share of national credit stands at 11.85 per cent, making it the second-largest province after DKI Jakarta. In terms of economic sectors, the largest credit distribution with low risk was seen in the household sector, amounting to IDR 438.16 trillion (growing 4.82 per cent YoY with a gross NPL of 3.18 per cent), followed by the manufacturing industry at IDR 170.72 trillion (growing 6.50 per cent YoY with a gross NPL of 2.62 per cent), and real estate at IDR 38.31 trillion (growing 12.79 per cent YoY with a gross NPL of 0.75 per cent).
However, a slowdown in credit distribution was noted in certain sectors, including wholesale and retail trade, construction, and agriculture, forestry, and fisheries, due to rising credit risks in these areas. OJK West Java is working to encourage banks to continue distributing credit to productive sectors with measurable risks to ensure sustainable regional economic growth.
In the capital markets, financial inclusion has grown significantly, with the number of Single Investor Identification (SID) holders in West Java rising by 63.76 per cent year-on-year to 4,867,627, the highest in the country. Total stock transactions from West Java reached IDR 36.40 trillion, the second largest in Indonesia. Currently, 85 companies from West Java are listed on the Indonesia Stock Exchange, spanning sectors such as banking, telecommunications, property, and automotive.
Other financial sectors also showed positive trends. Financing companies saw growth to IDR 81.23 trillion by February 2026, while venture capital disbursements rose by 8.91 per cent to IDR 3.43 trillion. Peer-to-peer lending through fintech reached IDR 23.94 trillion by December 2025, a 22.39 per cent increase from the previous year. Additionally, total pension fund assets in West Java increased by 5.58 per cent to IDR 23.43 trillion as of February 2026.
Regarding education and consumer protection, OJK West Java, alongside its Cirebon and Tasikmalaya branches, conducted 1,004 financial education activities between January and April 2026, reaching 1.81 million participants. These programmes targeted priority segments including women, students, persons with disabilities, farmers, fishermen, and MSMEs, aiming to strengthen public understanding of formal financial products and services.