OJK States Negative Outlook Does Not Affect Banking Sector, Public Urged to Remain Calm
REPUBLIKA.CO.ID, JAKARTA – The Financial Services Authority (OJK) has assured that the national banking sector remains strong amid the revision of a negative outlook for several major Indonesian banks by international rating agencies. The public is urged not to worry, as the industry’s performance remains stable and growing positively.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, emphasised that the outlook change was not caused by weakening bank performance. According to her, the adjustment was primarily triggered by the change in Indonesia’s sovereign credit outlook from stable to negative.
“Fundamentally, the condition of the national banking industry remains positive. The performance of major banks is also still strong,” said Dian in a statement on Wednesday (25/3/2026).
She explained that in common practice, the ratings of institutions or companies usually follow or are below the country’s rating. Therefore, when the sovereign outlook changes, the perceived risk to the banking sector is also affected, even though bank performance has not changed.
OJK data shows that bank credit in January 2026 grew by 9.96% year-on-year. Meanwhile, third-party funds (DPK) increased higher, at 13.48%. This condition reflects that public confidence in banking remains intact.
From a risk perspective, credit quality is also relatively safe. The non-performing loan (NPL) ratio is at 2.14%. Capitalisation is strong with a capital adequacy ratio (CAR) of 25.87%. Bank liquidity is even well above the safe threshold.
Major banks, including the state-owned banks group (Himbara) and KBMI 4 banks, recorded double-digit credit growth. Credit disbursement for each grew above 13%, followed by solid DPK growth around 16%.
“This shows that public confidence remains high and liquidity is very well maintained,” said Dian.
She added that the capital resilience of major banks also provides room for expansion while serving as a buffer against potential risks. Himbara’s CAR ratio is above 20%, while KBMI 4 banks exceed 22%.
Throughout 2025, these major banks also booked good profits. This performance is seen to reflect a balance between business growth, efficiency, and risk management.
Amid global uncertainties, the national banking sector continues to play an important role in supporting financing for the real sector and government priority programmes. The funding structure, dominated by domestic funds, also makes reliance on foreign financing relatively low.
OJK assesses that the outlook adjustment by rating agencies is temporary and has the potential to improve again. This is in line with opportunities for strengthening global and domestic economic conditions ahead.
“This outlook can change back to stable, even positive,” said Dian.
OJK, together with the Financial System Stability Committee (KSSK), assures that it will continue to maintain financial sector stability. Supervision is strengthened to ensure banks adhere to prudent principles and good governance.
With this condition, the public is expected to continue trusting the national banking system, which is still considered solid and capable of facing global economic dynamics.