Perbanas: Banking fundamentals remain solid, ready to support national economic growth

The National Banks Association (Perbanas) assesses that Indonesia’s banking sector remains in a healthy condition amidst global and domestic economic dynamics. This is reflected in strong credit growth, maintained liquidity, and adequate capital to support the intermediation function and national economic growth. Perbanas Chairman, who is also President Director of BRI, Hery Gunardi, stated that national banking is still capable of performing its role as a driver of the economy through continuously growing credit distribution and increasing public fund collection. “Based on OJK data, as of the end of April 2026, banking credit distribution grew by 9.98% year-on-year, while Third-Party Funds grew by 11.40%. This shows that public trust in the banking system is maintained and the intermediation function is running well,” said Hery. From the liquidity side, the Loan to Deposit Ratio (LDR) was recorded at 86.88%. Meanwhile, the Gross Non-Performing Loan (NPL) ratio stood at 2.17%. This condition shows that the banking industry still has adequate capacity to support economic financing while maintaining asset quality. According to Hery, this performance is important capital for banks to continue supporting economic activity and various national development programmes. Nevertheless, vigilance remains necessary given the still high global uncertainty. Geopolitical tensions, energy price volatility, and economic slowdowns in several countries could potentially affect business activity and financial market sentiment. “Therefore, prudent risk management, liquidity adequacy, and the quality of credit growth must continue to be the main focus so that the industry’s resilience is maintained,” explained Hery. To strengthen this resilience, banks need to continue enhancing various risk mitigation measures, including conducting sectoral stress tests on portfolios sensitive to rising energy costs, strengthening early warning systems for potential credit quality deterioration, and implementing stronger credit discipline according to the risk profile of each debtor. Additionally, banks must ensure sufficient liquidity to face potential market volatility and movements in public funds. These efforts can be made through strengthening liquidity indicators, including the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). At the same time, exchange rate risk and foreign currency liquidity management remain a concern. This is carried out through prudent management of the Net Open Position (NOP), strengthening hedging strategies, and careful management of foreign currency asset and liability maturities. These measures are considered important for maintaining financial sector stability, while ensuring that financing support for businesses and strategic sectors continues to run well. On another note, Perbanas welcomed the positive results of the Bank Indonesia Banking Survey, which indicated expectations of increased new credit demand in the second quarter of 2026. This development signals that domestic economic activity still has good momentum. Looking ahead, Perbanas believes the banking sector will remain one of the main pillars in supporting the national development agenda, including financing for productive sectors, strengthening MSMEs, industrial downstreaming, and various government priority programmes. “National banking is committed to continuing to carry out the intermediation function in a healthy and sustainable manner. With industry conditions that remain strong and supported by good risk management, we are optimistic that banks can continue to contribute to Indonesia’s economic growth while maintaining the stability of the national financial system,” concluded Hery.