OJK signals two to three banks to upgrade to KBMI IV category this year
The figures (capital adequacy indicators) are just a little short of entering KBMI IV.
Jakarta (ANTARA) - The Financial Services Authority (OJK) has signalled that two to three KBMI III banks have the potential to upgrade to KBMI IV banks this year, but declined to disclose the specific banks in question.
“Possibly this year, if I estimate, around two or three (banks upgrading to KBMI IV),” said OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, when met at the Supreme Court in Jakarta on Wednesday.
When asked about the optimism for adding KBMI IV banks amid geopolitical tensions between Iran and the United States (US), Dian explained that several banks have already submitted applications for the upgrade.
According to her, the capital positions of these banks are already approaching the KBMI IV threshold, requiring only a slight increase to join that group.
She added that OJK continues to encourage such upgrades because KBMI IV banks are deemed more sustainable and have a greater capacity to drive the economy.
Regarding the impact of the war, Dian assessed that the overall financial system stability is still maintained and believes the effects will not be as severe as previous crises like the COVID-19 pandemic.
Nevertheless, she emphasised the need for the banking industry to remain vigilant by preparing anticipatory measures, including potential policy reviews if global conditions deteriorate.
“Of course, we do not expect this (war) to continue, because if we look at various international analyses indicating that this war is not just targeting one country, but rather hitting the global economy,” said Dian.
For information, banks in the KBMI III group are those with core capital above Rp14 trillion to Rp70 trillion. Meanwhile, banks in KBMI IV must have core capital above Rp70 trillion.
Last year, OJK targeted six banks to shift from KBMI III to KBMI IV over the next two to three years.
Referring to data from the Indonesian Banking Statistics published by OJK as of June 2025, there are four banks in the KBMI IV category and 14 in the KBMI III category.
As of June 2025, KBMI III banks recorded core capital (Tier I) of Rp445.08 trillion, with a core capital ratio to risk-weighted assets of 23.19 percent. The capital adequacy ratio (CAR) stood at 24.53 percent.
Profitability performance is reflected in a return on assets (ROA) of 1.72 percent. Meanwhile, operational efficiency, measured by the ratio of operational expenses to operational income (BOPO), was 86.41 percent.