OJK Ensures No Bank Rush Amid Rupiah Weakening

The Financial Services Authority (OJK) has confirmed there is currently no potential for massive fund withdrawals or a bank rush amid the weakening rupiah exchange rate, considering that the political, security, and economic situation in Indonesia is deemed to remain conducive. “A bank rush is generally caused by issues of public trust in the banking system. Therefore, efforts to maintain public trust must always be carried out by bank management,” said Chief Executive of Banking Supervision at OJK Dian Ediana Rae during a press conference on the results of the May 2026 Board of Commissioners Meeting in Jakarta, Friday (5/6). He added that public trust in banking can be maintained through efforts to keep bank performance sound, the implementation of prudential banking, and active risk management across every business line. Dian stated that the OJK recognises that, theoretically, the weakening of the rupiah exchange rate could impact the rise in imported goods prices (imported inflation), reduce public purchasing power, and burden the fiscal position due to still substantial government subsidies. On the other hand, he 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 routinely conduct monitoring and periodic evaluations regarding exchange rate movements and their impact on banking,” Dian said. In April 2026, the banking Net Open Position (NOP) ratio was recorded at 1.63% in a long position, with foreign currency assets exceeding liabilities. This, according to Dian, indicates that banks’ direct exposure to exchange rate risk is relatively maintained and under control. “Thus, the immediate impact of the rupiah’s weakening on banking stability is still relatively limited,” he stated. Nevertheless, Dian said a continued rupiah weakening will impact debtors with exposure vulnerable to foreign exchange movements. This could ultimately pressure debtor repayment capacity and increase credit risk. Under these conditions, the OJK continues to ask banks to ensure the adequacy of Allowance for Impairment Losses (CKPN) formation and strong capital resilience. To ensure banks in Indonesia have measured and controlled various risks, the OJK continuously monitors risk developments and asks banks to implement comprehensive risk management. To measure bank resilience in facing various potential macroeconomic shocks, the OJK also regularly conducts stress tests. Based on the stress test results, the banking sector is still deemed capable of facing potential pressures arising from the rupiah’s weakening. As of April 2026, the banking capital indicator, or capital adequacy ratio (CAR), after accounting for dividend distribution, was recorded at 23.97%. This signifies strong bank capital resilience as an adequate risk mitigation buffer. Meanwhile, credit quality remains maintained with a gross non-performing loan (NPL) ratio of 2.17% and net NPL of 0.84%, while the loan at risk (LAR) was recorded at 8.82%. The liquidity coverage ratio (LCR) stood at 192.37%, with the ratio of liquid assets to non-core deposits (AL/NCD) and liquid assets to third-party funds (AL/DPK) at 111.13% and 25.39%, respectively.