OJK Emphasises Criminal Route as Last Resort in Non-Performing Loan Cases

JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) has emphasised the importance of legal certainty for banking industry players in handling non-performing loans. Legal certainty is considered an essential component to maintain healthy and sustainable credit growth amid the economic challenges and business risks faced by the banking sector. This assertion was conveyed by OJK during the Banking Industry Seminar on “Applying the Business Judgement Rule to Non-Performing Loans in Banks,” held in Jakarta on Tuesday (12/5/2026). OJK assesses that efforts to drive national credit growth must be balanced with legal certainty for bankers in making business decisions. According to the regulator, a common understanding of the business judgement rule is necessary so that the banking industry can continue to perform its intermediation function optimally while still applying principles of prudence and good governance. Amid discussions on this legal certainty, the performance of national banking intermediation still shows positive growth. The highest growth comes from investment credit, which grew 20.72 percent (year-on-year), followed by consumer credit at 6.34 percent and working capital credit at 3.88 percent. Based on debtor categories, corporate credit recorded the highest growth of 14.74 percent (year-on-year). Meanwhile, from the ownership side, credit from state-owned banks grew the highest at 12.78 percent (year-on-year). In addition to credit disbursement, public fund mobilisation has also increased. Third-Party Funds (DPK) as of February 2026 grew 13.18 percent (year-on-year) to Rp10,102 trillion. The liquidity of the banking industry is also deemed adequate. The Liquid Assets to Non-Core Deposit Ratio (AL/NCD) was recorded at 121.29 percent, and the Liquid Assets to Third-Party Funds Ratio (AL/DPK) at 27.4 percent. Both ratios remain well above their respective thresholds of 50 percent and 10 percent. The Liquidity Coverage Ratio (LCR) stands at 195.64 percent.