Rupiah Continues to Correct, Is There a Potential Bank Run? Here is What the OJK Says
The Financial Services Authority (OJK) views the current trend of rupiah weakening, which has breached the level of Rp 18,000 per US dollar, as having a relatively stable impact on the financial services sector. The OJK assesses that the direct exposure of Indonesian banks to exchange rate risks is also relatively well-maintained.
Regarding the movement of the rupiah exchange rate, the OJK observes that the direct impact on the financial services sector, particularly in banking, is currently still relatively controlled. This can be seen from the banking capital adequacy ratio, which remains solid with a Capital Adequacy Ratio (CAR) of 23.97 per cent as of April 2026, providing sufficient buffer space to absorb various potential risks, stated the Chair of the OJK Board of Commissioners, Friderica Widyasari Dewi, during a press conference for the OJK Board of Commissioners Meeting (RDK) in May 2026 on Friday (5/6/2026).
Furthermore, Friderica, often referred to as Kiki, noted that the direct exposure of Indonesian banks to exchange rate risks is relatively guarded. This is reflected in the net foreign exchange position, which consistently remains well below the maximum threshold of 20 per cent of a bank’s capital.
Nevertheless, Kiki stated that the OJK continues to remain vigilant regarding various risk transmission channels from rupiah exchange rate fluctuations to financial service institutions in Indonesia. These include the potential increase in foreign exchange liability burdens on corporations, pressure on business sectors with high import exposure, and the impact of rising raw material and operational costs.
“This includes the rise in global energy commodity prices, which could affect the quality of banking assets, specifically the decline in the ability of debtors to pay if these financial conditions persist. Therefore, to mitigate these risks, we will strengthen the monitoring of foreign exchange activities in banking through daily monitoring of net foreign exchange positions, foreign exchange liquidity adequacy, and compliance with foreign exchange regulations,” she said.