Ready to Drive National Economic Growth, Perbanas Chairman Affirms Solid Banking Fundamentals

The Indonesian Banking Association (Perbanas) assesses that Indonesia’s banking sector remains in a healthy condition amidst global and domestic economic dynamics. This is reflected in robust credit growth, maintained liquidity, and adequate capitalisation to support intermediation functions and national economic growth. Perbanas Chairman, who is also President Director of BRI, Hery Gunardi, stated that national banks are still capable of performing their role as drivers of the economy through continuously growing credit disbursement and increasing public fund accumulation. “Based on OJK data, as of the end of April 2026, banking credit distribution grew 9.98% year-on-year, while Third Party Funds grew 11.40%. This shows that public confidence in the banking system is maintained and the intermediation function is running well,” Hery said on Thursday, 11 June 2026. 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%. These conditions indicate that the banking industry still has adequate capacity to support economic financing while maintaining asset quality. According to Hery, this performance is an 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 credit growth quality must continue to be the main focus so that industry resilience is maintained,” Hery explained. To strengthen this resilience, banks need to continuously enhance various risk mitigation measures. Strengthening risk management is an important aspect, including through conducting sectoral stress tests on portfolios sensitive to energy cost increases, reinforcing early warning systems for potential credit quality deterioration, and implementing stronger credit discipline according to each debtor’s risk profile. Additionally, banks also need to ensure liquidity adequacy to face potential market volatility and movements in public funds. These efforts can be carried out through strengthening liquidity indicators, including the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).