OJK Ensures No Bank Rush Amid Rupiah Weakening
The Financial Services Authority (OJK) has ensured that there is currently no potential for large-scale fund withdrawals or a bank run amidst the weakening of the rupiah exchange rate, noting that Indonesia’s political, security, and economic situations remain conducive.
“Bank runs are generally caused by issues regarding public trust in the banking system. Therefore, efforts to maintain public confidence must be continuously undertaken by bank management,” said OJK Executive Head of Banking Supervision, Dian Ediana Rae, during a press conference following the May 2026 RDKB meeting in Jakarta on Friday (5/6).
She added that public trust in banking can be maintained through efforts to keep bank performance high, the implementation of prudential banking principles, and the active execution of risk management across all business lines.
Dian stated that OJK recognises that, theoretically, the weakening of the rupiah exchange rate could lead to an increase in the price of imported goods (imported inflation), reduce public purchasing power due to rising prices, and burden the fiscal position as government subsidies remain significant.
On the other hand, she noted that the weakening exchange rate could increase the competitiveness of Indonesian export products in the global market and make Indonesia relatively more attractive to foreign tourists.
“Therefore, we continuously conduct regular monitoring and evaluation regarding exchange rate movements and their impact on the banking sector,” said Dian.
In April 2026, the banking sector’s Net Foreign Exchange Position (PDN) ratio was recorded at 1.63%, with a long position, meaning foreign currency assets are greater than foreign currency liabilities. Dian noted that this indicates the banking sector’s direct exposure to exchange rate risks is relatively maintained and controlled.
“As such, the immediate impact of the rupiah’s weakness on banking stability remains relatively limited,” she said.
However, Dian noted that a continued weakening of the rupiah will impact debtors who have exposure vulnerable to foreign exchange movements. This could ultimately pressure debtors’ ability to pay and increase credit risk.
Under these conditions, OJK continues to request banks to ensure adequate formation of impairment loss allowances (CKPN) and strong capital resilience.
To ensure that banks in Indonesia have measured and controlled various risks, OJK continues to perform ongoing monitoring of risk developments and requests banks to always implement comprehensive risk management.
To measure the resilience of the banking sector in facing various potential macroeconomic shocks, OJK also routinely conducts stress tests. Based on the results of these stress tests, the banking sector is deemed capable of facing potential pressures arising from the weakening rupiah.
As of April 2026, the capital adequacy ratio (CAR) of the banking sector, after accounting for dividend distributions, was recorded at 23.97%. This signifies strong banking capital resilience as an adequate risk mitigation buffer.
Meanwhile, credit quality remains maintained with a gross NPL ratio of 2.17% and a net NPL of 0.84%, while the loan at risk (LAR) was recorded at 8.82%.
Furthermore, the liquidity coverage ratio (LCR) stands at 192.37%, while the liquid assets/non-core deposit (AL/NCD) and liquid assets/third-party funds (AL/DPK) ratios were 111.13% and 25.39%, respectively.