Perbanas: Banks remain solid amid global and domestic economic dynamics
The Indonesian National Banks Association (Perbanas) assesses that the Indonesian banking sector remains in a healthy condition amid global and domestic economic dynamics. This is reflected in strong credit growth, maintained liquidity, and adequate capital to support intermediation functions and national economic growth.
Perbanas Chairperson concurrently BRI President Director Hery Gunardi stated that national banks are still able to perform their role as drivers of the economy through continuously growing credit distribution and increasing public fund collection. Based on data from the Financial Services Authority (OJK), until the end of April 2026, bank lending grew by 9.98 per cent year-on-year (yoy), while third-party funds grew by 11.40 per cent.
“This shows that public confidence in the banking system is maintained and the intermediation function is running well,” Hery said. From the liquidity side, the loan to deposit ratio (LDR) was recorded at 86.88 per cent. Meanwhile, the gross non-performing loan (NPL) ratio stood at 2.17 per cent. This condition indicates 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 that global uncertainty is still quite high. 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 remain the main focus so that the industry’s resilience is maintained,” Hery explained. To strengthen this resilience, banks need to continuously improve various risk mitigation measures. Strengthening risk management is an important aspect, including through conducting sectoral stress tests on portfolios sensitive to rising energy costs, strengthening early warning systems for potential deterioration in credit quality, and implementing stronger credit discipline according to the risk profile of each debtor.
In addition, banks also need to ensure liquidity adequacy to face potential market volatility and movements in public funds. These efforts can be made by strengthening liquidity indicators, including the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). At the same time, managing exchange rate risk and foreign currency liquidity remains a concern. This is done through prudent management of the Net Open Position (NOP), strengthening hedging strategies, and careful management of foreign currency asset and liability maturities.
According to Hery, these measures are important for maintaining the stability of the financial sector, while ensuring financing support for the business world and strategic sectors continues to run well. Meanwhile, Perbanas welcomed the positive results of Bank Indonesia’s Banking Survey which showed expectations of an increase in new loan demand in the second quarter of 2026. This development signals that domestic economic activity still has good momentum.
Going forward, Perbanas believes the banking sector will remain one of the main pillars in supporting the national development agenda, including financing productive sectors, strengthening MSMEs, industrial downstreaming, and various government priority programmes. “National banks are committed to continuing to perform their intermediation function in a sound and sustainable manner. With the industry’s condition remaining 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,” Hery concluded.