Positive performance of national banks indicates strong fundamentals
Jakarta (ANTARA) - The continued growth in national banking intermediation activities amidst global economic pressures indicates that Indonesia’s banking sector remains robust, particularly among the Association of State-Owned Banks (Himbara).
Financial Consultant and Planner Elvi Diana stated in a written statement in Jakarta on Sunday that the ability of state-owned enterprises (SOE) banks to maintain credit and profitability growth is inseparable from their strong business structure, government support, and maintained public trust amidst global economic uncertainty.
According to data from the Financial Services Authority (OJK), banking credit grew 9.49 percent year-on-year to IDR 8,659.05 trillion as of March 2026, an increase compared to February 2026 which grew 9.37 percent year-on-year.
According to Elvi, the dominance of low-cost funds or current account savings accounts (CASA) is one of the factors supporting banking funding cost efficiency, so that net interest margins remain stable despite global interest rate pressures.
She believes that this condition is in line with the bank efficiency structure theory put forward by Demsetz (1973), namely that financial institutions with high operational efficiency tend to have better profitability and resilience in crisis or economic uncertainty.
She cited PT Bank Rakyat Indonesia (Persero) Tbk’s strength in the micro, small and medium enterprise (MSME) sector as contributing to intermediation growth amidst global volatility.
BRI recorded net interest income of IDR 40.155 trillion in the first quarter of 2026, or a growth of 11.9 percent year-on-year. According to Elvi, this achievement shows that BRI’s intermediation function is still running very well amidst global volatility.
She also highlighted the importance of diversifying the credit portfolio in maintaining controlled banking asset quality. With broader financing distribution, it is believed that credit concentration risk can be minimized.
On the other hand, digital transformation carried out by SOE banks is considered to improve service efficiency while expanding financial inclusion. Elvi believes that digitalization strengthens the bank’s ability to raise public funds and reduce operational costs.
She added that high public trust in Himbara member banks is also a factor supporting the stability of the national financial system amidst global uncertainty.
She is optimistic that the national banking sector still has room for positive growth throughout 2026 as long as domestic macroeconomic stability remains stable and demand for productive credit continues to increase.
“As long as domestic consumption, the MSME sector and government investment continue, SOE banks such as BRI still have the potential to be the main driver of national banking intermediation growth,” said Elvi.