Perbanas: Consistently Building Low-Cost Funds is Key Amid Tight Liquidity

Jakarta (ANTARA) - The Chairman of the National Banks Association (Perbanas), Hery Gunardi, has emphasised that the banking sector’s consistency in building low-cost funds, namely savings and current accounts, is a foundation that must not be overlooked in the face of tight liquidity. In addition, he also stressed the importance of maintaining asset and liability management discipline amid narrowing liquidity. “Liquidity resilience is non-negotiable,” said Hery, who is also the President Director of BRI, at the Mid Year Economic Outlook 2026 event in Jakarta on Friday. Besides maintaining liquidity, Hery said banks need to implement a more selective and productive lending strategy by prioritising productive sectors. This is done while still applying the prudential principle, setting a sectoral risk appetite in line with current macroeconomic conditions, and building a quality credit pipeline through a more comprehensive ecosystem approach. Hery also emphasised the importance of proactive asset quality management through a strict underwriting process, a more granular early warning system, and collection readiness if collectability quality begins to decline. Furthermore, the acceleration of digital transformation and the use of data analytics is no longer considered just a medium-term strategy, but has become a business necessity for the current banking industry. Along with the 100 basis point (bps) increase in the BI-Rate in May-June 2026, Hery said this condition will structurally increase the repricing pressure on third-party funds (DPK). The recent rise in deposit interest rates is also expected to put pressure on the banking sector’s net interest margin (NIM). He added that the banking cost of funds is also expected to tend to increase, making business management discipline key. According to him, the banking industry is now entering an era of selective growth. Although the banking industry is generally still considered solid, he assessed that a number of pressures are beginning to emerge. DPK growth is starting to slow, NIM is compressed, and the capital adequacy ratio (CAR) has slightly decreased compared to the previous month. “In other words, banks are still strong, but the operating environment for banking is now becoming quite challenging,” said Hery. Meanwhile, from the lending side, the value of undisbursed loans is still quite large. According to him, the banking sector’s focus should not only be on approving credit facilities, but must also encourage debtors to actually utilise the approved credit ceiling for business expansion. Hery also sees a paradox in the banking industry. On one hand, lending standards are increasingly loose, making banks more accommodative in channelling financing. On the other hand, new loan demand has actually declined, as shown in the Banking Survey results by Bank Indonesia in the first quarter of 2026. Furthermore, credit growth is also not evenly distributed among bank groups. KBMI 3 and KBMI 4 banks are still the main pillars of industry credit growth, while KBMI 1 and KBMI 2 banks show a more volatile trend, with some even still recording negative growth. When viewed by segment, he noted the sharpest decline in loan demand occurred in working capital loans, consumer loans, and MSME loans, especially KUR. These three segments are considered the most sensitive to the weakening of purchasing power, business sentiment, and economic uncertainty. He further reminded that asset quality must also be continuously maintained. Although the banking loan at risk (LAR) ratio at the beginning of 2026 showed a gradual downward trend, the BI-Rate increase, the weakening of the rupiah exchange rate, and pressure on purchasing power have the potential to reverse this positive trend if not responded to appropriately. Therefore, according to Hery, each bank also needs to have a watch list of debtors potentially affected by the exchange rate weakening, accompanied by a mitigation strategy ready to be executed before the problem grows larger.