OJK Reveals Banking Conditions in Indonesia: Credit Growing, Funds Piling Up

Jakarta, CNBC Indonesia — The performance of the national banking industry through March 2026 continues to demonstrate solid resilience, although signs of normalisation are beginning to appear in several key indicators.

The Executive Head of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that banking intermediation performance remains positively growing. Credit as of March 2026 reached Rp8,659 trillion, or 9.49% year-on-year (yoy) growth, an increase from February’s 9.37% yoy.

“Based on usage type, investment credit grew the highest at 20.85%, followed by corporate credit at 12.8%. Meanwhile, SME credit showed improvement with 0.12% growth after previously contracting 0.56% in February,” said Dian during the April 2026 Monthly Commissioners’ Meeting press conference on Tuesday (5/5/2026).

In terms of ownership, state-owned bank credit growth was the highest at 13.66% yoy.

On the funding side, third-party funds (DPK) grew higher than credit, at 13.55% yoy to Rp10,231 trillion. This growth was supported by current accounts surging 21.37% yoy, followed by deposits at 11.31% yoy and savings at 8.30% yoy.

Consequently, banking liquidity remains very adequate. The liquid assets to non-core deposit ratio (AL/NCD) and to DPK (AL/DPK) stood at 122.55% and 27.85% respectively, far above the regulatory thresholds. Meanwhile, the Liquidity Coverage Ratio (LCR) was recorded at 193.64% and the Net Stable Funding Ratio (NSFR) at 128.84%.

From an asset quality perspective, credit risk remains controlled with a gross non-performing loan (NPL) ratio of 2.14% and net NPL of 0.83%. The Loan at Risk (LAR) level is 8.94%.

“Overall, the banking sector’s profitability remains maintained with ROA at 2.47%. Meanwhile, capitalisation stays strong with CAR at 25.09%, although slightly down from February’s 25.83% due to dividend distributions,” explained Dian.