Rupiah Under Pressure, Perbanas Says Banking Sector Remains Healthy

KETUA Umum Perhimpunan Bank Nasional (Perbanas) Hery Gunardi stated that the national banking industry is currently in a healthy and resilient condition. According to him, the industry has adequate capacity to support national economic growth amidst ongoing global dynamics. The capital adequacy ratio (CAR) in April 2026 stood at 23.97 percent. Meanwhile, the Loan to Deposit ratio (LDR) was 86.88 percent and the non-performing loan (NPL) ratio was 2.17 percent. “Over the last two decades, the banking sector has undergone significant transformation, both in terms of regulation, supervision, governance, risk management, and capital,” Hery told Tempo on Monday, 15 June 2026. Hery stated that various post-crisis reforms have strengthened the resilience of the national financial system, including the implementation of stricter risk management, risk-based supervision, regular stress tests, and the existence of various risk mitigation instruments and a financial system safety net. The national banking sector, he said, has experience in facing periods of pressure, from the 2008 global financial crisis to the COVID-19 pandemic. The BRI President Director also assessed that the current rupiah weakening cannot be equated with what happened during the 1998 monetary crisis. This is because the financial crisis of 1997-1998 was not solely caused by the exchange rate depreciation. In 1998, the rupiah weakening occurred simultaneously with deep pressure on the national economy. At that time, the economy contracted by up to 13.1 percent, inflation soared to 58.5 percent, foreign exchange reserves were at a limited level of around US$17 billion, and the non-performing loan ratio in the banking sector approached 60 percent. “Thus, that crisis was not only a currency crisis, but also a crisis of confidence in the financial system, the banking sector, and the economy as a whole,” Hery said.