Financial Services Sector Stable as Bank Lending Surges

The Financial Services Authority (OJK) has stated that the Financial Services Sector (SJK) is in a stable and well-maintained condition amid geopolitical uncertainty and inflationary pressures. Global financial markets moved mixed as conflict in the Middle East escalated again. On the domestic side, price pressures eased with July 2026 inflation recorded at 2.88 percent year-on-year (yoy).

“Based on these developments, financial sector stability is maintained, supported by an adequate mix of fiscal and monetary policies,” said OJK Board of Commissioners Chairperson Friderica Widyasari Dewi at a press conference in Jakarta on Tuesday, 4 August 2026.

The stability of the financial services sector is supported by positively growing industry performance that contributes to national economic growth.

In banking, intermediation performance continued its strengthening trend with a well-maintained risk profile. Credit growth in June 2026 surged to 12.67 percent yoy, reaching Rp 9,081 trillion (May 2026: 11.51 percent yoy growth).

By type of use, investment credit recorded the highest growth at 24.9 percent, followed by working capital credit at 8.94 percent, while consumer credit grew by 5.75 percent.

By debtor category, the highest credit growth was corporate credit, which grew by 20.45 percent yoy, while MSME credit continued its upward trend with positive growth of 1.05 percent yoy (May 2026: 0.60 percent yoy). In terms of ownership, state-owned bank credit grew the highest at 16.54 percent yoy.

The portion of bank Buy Now Pay Later (BNPL) credit products was recorded at 0.34 percent. As of June 2026, the outstanding BNPL credit balance, as reported in the Financial Information Service System (SLIK), grew by 33.54 percent yoy (May 2026: 37.72 percent yoy) to Rp30.7 trillion, with the number of accounts reaching 32.77 million (May 2026: 32.54 million).

On the other hand, Third-Party Funds (DPK) grew by 10.21 percent yoy (May 2026: 13.47 percent yoy) to Rp 10,282 trillion, with current accounts, deposits, and savings growing by 9.95 percent yoy, 8.25 percent yoy, and 12.16 percent yoy, respectively.

Credit growth outpacing DPK growth caused the banking industry’s liquidity ratios to decline in June 2026, though they remained adequate. The Liquid Assets/Non-Core Deposit (AL/NCD) and Liquid Assets/Third-Party Funds (AL/DPK) ratios stood at 101.92 percent (May 2026: 108.20 percent) and 23.08 percent (May 2026: 24.74 percent) respectively, still above the thresholds of 50 percent and 10 percent. The Liquidity Coverage Ratio (LCR) was at 182.75 percent.

Meanwhile, credit quality improved with the gross NPL ratio falling to 2.09 percent (May 2026: 2.17 percent) and net NPL maintained at 0.82 percent (May 2026: 0.84 percent). Loan at Risk (LaR) was recorded at 8.47 percent (May 2026: 8.72 percent). Overall, the banking industry’s profitability level (ROA) was 2.47 percent (May 2026: 2.45 percent).

Banking capital adequacy remained strong with adequate risk mitigation buffers, reflected in a CAR of 23.70 percent (May 2026: 23.74 percent).