Moody’s and Fitch Downgrade Outlook, OJK Affirms Banks' Strength
JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) assesses that the performance of the banking industry remains solid. Growth is also deemed to remain positive.
The Executive Head of Banking Supervision at OJK, Dian Ediana Rae, explained that the negative outlook revisions by Moody’s and Fitch were not triggered by fundamental factors of the banks. This change follows the downgrade of Indonesia’s sovereign credit outlook from stable to negative.
“The revision of the outlook for Indonesia’s major banks is more driven by the change in the sovereign credit rating outlook from stable to negative, which affects the risk perception of the national banking sector as well as the influence of external factors from global macroeconomic dynamics,” she stated in an official release on Wednesday (25/3/2026).
“Fundamentally, the condition of the national banking industry is in a positive state, with credit growth in January 2026 at 9.96% (yoy) in line with third-party fund growth of 13.48% (yoy),” Dian added.
Credit quality remains well-maintained. The non-performing loan (NPL) ratio is recorded at 2.14%. Capital adequacy stands at 25.87%.
Liquidity is also strong. The liquid assets to non-core deposit ratio (AL/NCD) reaches 121.23%. The liquid assets to third-party funds ratio (AL/DPK) is 27.54%. The liquidity coverage ratio (LCR) is 197.92%. All indicators are above the threshold limits.
The performance of major banks and the Association of State-Owned Banks (Himbara) is also robust. Capital adequacy and liquidity ratios are deemed sufficient to mitigate risks.
Credit growth for banks in core capital group (KBMI) 4 reaches 13.34%. Himbara records 13.43%.
Funding also grows significantly. Third-party funds for KBMI 4 rise by 16.32%. Himbara grows by 16.38%. These figures reflect sustained strong public confidence.
“This provides adequate room for business expansion while serving as a strong buffer in anticipating potential future risks,” Dian explained.