OJK Confident Negative Outlook for Major Banks is Temporary
The Financial Services Authority (OJK), together with other stakeholders, particularly members of the Financial System Stability Committee (KSSK), will continue to monitor and maintain the stability of the financial system.
Jakarta (ANTARA) - The Financial Services Authority (OJK) views the adjustment of outlooks to negative by international rating agencies for major banks in Indonesia as temporary and potentially reversible.
In this regard, OJK also respects the methodology and views of each international rating agency.
“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, ensuring that the resilience of the banking sector remains intact in facing economic dynamics and growth,” said the Executive Head of Banking Supervision at OJK, Dian Ediana Rae, in an official statement in Jakarta on Wednesday.
The confidence that the negative outlook is temporary is based on improving prospects for the global and domestic economy, as well as strengthening 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.
Dian explained that the negative outlook for major banks in Indonesia, including the Association of State-Owned Banks (Himbara), by international rating agencies such as Moody’s and Fitch, is not due to the fundamental performance factors of those banks.
The revision of outlooks for major Indonesian banks is more triggered by the change in Indonesia’s 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.
For information, in general, the ratings of institutions/companies in a country are equal to or lower than the sovereign rating of that country.
OJK stated that the adjustment to the outlook is fundamentally an assessment by the rating agencies and will not directly affect the banks’ ability to access funding sources.
Currently, the credit ratings of KBMI 4 banks and Himbara remain at investment grade levels and are supported by strong fundamentals.
In addition, the funding structure of the national banking sector is generally still dominated by domestic third-party funds, so dependence on external funding, especially international funding, is relatively limited.
If needed, banks have also calculated the requirements for such funding, including cost-benefit comparisons and options to obtain that funding.
Overall, Dian assured that the performance of the banking industry to date remains solid and with positive growth.
Credit performance in January 2026 grew by 9.96 percent (year on year/yoy), in line with third-party fund growth (DPK) of 13.48 percent (yoy).
Additionally, credit quality is maintained with NPL at 2.14 percent, strong capitalisation at 25.87 percent, and ample liquidity with AL/NCD, AL/DPK, and LCR ratios of 121.23 percent, 27.54 percent, and 197.92 percent, respectively, far above the thresholds.
Credit growth for KBMI 4 banks and Himbara recorded double-digit growth, at 13.34 percent and 13.43 percent, respectively. On the funding side, DPK growth for KBMI 4 and Himbara was 16.32 percent and 16.38 percent, respectively.
Capital resilience is also at a very strong level. The CAR ratio for Himbara in January 2026 was at 20.32 percent, while the CAR ratio for KBMI 4 was at 22.33 percent.
Meanwhile, in terms of asset quality, the gross non-performing loan ratio (NPL gross) is in the range of less than 1 percent to 3 percent, with Loan at Risk (LaR) remaining controlled and supported by adequate provisioning.
Throughout 2025, KBMI 4 banks and Himbara 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 that banks adhere to prudence principles, good governance, and adequate risk management.