OJK Affirms that National Banking Fundamentals and State-Owned Banks Remain Solid
The Financial Services Authority (OJK) has ensured that the performance of the national banking industry, including the Association of State-Owned Banks (Himbara), remains in a solid condition with positive growth. This affirmation responds to actions by international rating agencies, Moody’s and Fitch, which revised the outlook for several major Indonesian banks to negative.
The Executive Head of OJK Banking Supervision, Dian Ediana Rae, stated that the revision was not caused by fundamental performance factors of the banks. The change in outlook was more triggered by the shift in Indonesia’s sovereign credit rating from stable to negative, as well as the influence of global macroeconomic dynamics.
Based on January 2026 data, the national banking industry shows healthy growth figures:
OJK records that capital resilience is at a very strong level, providing room for expansion as well as adequate risk buffers.
The Capital Adequacy Ratio (CAR) for Himbara is recorded at 20.32%, while for KBMI 4 it reaches 22.33%.
From the liquidity side, the banking condition is at a very well-maintained level with a Liquidity Coverage Ratio (LCR) of 197.92%, far above the threshold.
Asset quality also remains prudent with the gross Non-Performing Loan (NPL) ratio controlled in the range of 1% to 3%.
OJK views this outlook revision as temporary (reversible) and potentially returning to a stable position as economic prospects improve.
Currently, the credit ratings for KBMI 4 banks and Himbara remain at investment grade levels.
“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 is always maintained in facing economic dynamics and growth,” said Dian.
OJK is committed to continuously conducting supervision to ensure that principles of prudence and good governance are consistently implemented by the banking industry.