OJK Affirms Solid Performance of State-Owned Banks Despite Rating Agencies' Outlook Revisions
Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) has affirmed that the banking industry’s performance remains solid with positive growth to date. This was stated by Dian Ediana Rae, the Executive Head of Banking Supervision at OJK.
Regarding the negative outlook revisions for major Indonesian banks, including the state-owned banks group (Himbara), by international rating agencies such as Moody’s and Fitch, Dian explained that these are not due to fundamental performance factors in the banks themselves. The outlook revisions for Indonesia’s major banks are primarily driven by the change in the sovereign credit rating outlook from stable to negative, which influences risk perceptions of the national banking sector and external factors from global macroeconomic dynamics.
For information, in general, the ratings of institutions/companies in a country are equal to or lower than the sovereign rating of that country.
“Fundamentally, the national banking industry is in a positive condition, with credit growth in January 2026 at 9.96% (year-on-year), in line with third-party funds growth at 13.48% (year-on-year),” said Dian in her statement on Wednesday (25/3/2026).
Additionally, credit quality is maintained with non-performing loans at 2.14%, strong capitalisation at 25.87%, and ample liquidity with AL/NCD, AL/DPK, and LCR ratios of 121.23%, 27.54%, and 197.92% respectively, well above the thresholds.
From a fundamental perspective, the performance of Indonesia’s major banks and Himbara is currently at a strong level, with adequate capital and liquidity ratios to anticipate various potential risks ahead.
Credit growth for Core Capital-Based Bank Groups (KBMI) 4 and Himbara recorded double-digit growth, at 13.34% and 13.43% respectively.
On the funding side, third-party funds (DPK) growth for KBMI 4 and Himbara was 16.32% and 16.38% respectively, indicating sustained public confidence and liquidity conditions at a very well-maintained level.
Capital resilience is also at a very strong level. Himbara’s CAR ratio in January 2026 stood at 20.32%, while KBMI 4’s was at 22.33%. This provides adequate room for business expansion while serving as a strong buffer against potential future risks.
From an asset quality perspective, the gross non-performing loan (NPL) ratio is in the range of less than 1% to 3%, with Loan at Risk (LaR) remaining controlled and supported by adequate provisioning. This reflects prudent governance and risk management practices, particularly in maintaining credit disbursement quality.
Throughout 2025, KBMI 4 and Himbara banks also recorded good profits, reflecting a balance between growth, efficiency, asset quality, and strengthened risk management.
Amid global uncertainties, Himbara continues to demonstrate stable intermediation performance and its strategic role in supporting real sector financing and government priority programmes.
OJK continues to conduct ongoing supervision to ensure banks adhere to prudence principles, good governance, and adequate risk management.
The outlook adjustments made are essentially assessments by rating agencies and will not directly affect banks’ ability to access funding sources. Currently, the credit ratings of KBMI 4 and Himbara banks remain at investment grade levels, supported by strong fundamentals.
Moreover, the national banking funding structure is generally dominated by domestic third-party funds, so reliance on external funding, particularly international funding, is relatively limited. Where necessary, banks have calculations for such needs, including cost-benefit assessments and options for obtaining funding.
OJK respects the methodologies and views of each international rating agency and views these outlook adjustments as temporary and potentially reversible as global and domestic economic prospects improve, along with strengthened economic fundamentals, particularly fiscal and external indicators.
With these developments, the future credit rating outlook has the potential to return to stable or positive positions.
OJK continues to conduct ongoing supervision to ensure banks adhere to prudence principles, good governance, and adequate risk management.
“OJK, together with other stakeholders, particularly members of the Financial System Stability Committee (KSSK), will continue to monitor and maintain financial system stability through policy coordination and strengthened supervision, so that the resilience of the banking sector remains intact in facing economic dynamics and growth,” said Dian.