OJK Says Impact of Rupiah Weakening on BPR is Relatively More Limited
JAKARTA - The Financial Services Authority (OJK) assesses that the direct impact of exchange rate weakening on the People's Economic Bank (BPR) is relatively more limited because this bank collects funds and disburses loans in rupiah currency and serves the community and MSMEs in the region.
In addition, BPR also does not carry out foreign exchange business activities so that it does not have direct exposure to exchange rate risk as commercial banks that have foreign exchange transactions.
"However, BPR still has the potential to face indirect impacts," said the Head of the Banking Supervisory Authority of the OJK, Dian Ediana Rae, as quoted by Antara.
Dian detailed that the indirect impact included a decrease in the ability to pay for MSMEs debtors who depend on imported raw materials or imported products, an increase in the production and operational costs of small business actors due to the increase in the price of imported raw materials, and inflationary pressure that has the potential to reduce people's purchasing power so that it affects the performance of BPR debtors.
"OJK always encourages BPR to strengthen resilience and implement the principle of prudence in facing various economic dynamics, including exchange rate volatility," said Dian.
OJK asked BPR to increase monitoring of debtors who have high sensitivity to exchange rate changes, especially business actors who depend on import activities or have links to global supply chains.
In addition, BPR is asked to identify debtors who are beginning to experience cash flow pressure so that mitigation and handling steps can be taken before credit quality deteriorates by implementing a strict early warning system.
"In the end, strong capital is the main cushion in facing increased risks. Therefore, BPR needs to ensure that the level of capital and the formation of CKPN is adequate," said Dian.
He said that OJK continues to monitor the development of the global economy, which is currently overshadowed by geopolitical turmoil and oil prices, which have an impact on escalating volatility in the global financial market as well as strengthening the US dollar index, which has increased the fluctuation of the exchange rate of emerging markets.
On an ongoing basis, OJK also continues to carry out intensive monitoring of the development of the performance of the banking industry.
The weakening of the rupiah exchange rate can trigger an increase in production costs and inflation, due to the increase in the cost of imported goods, which in turn can affect people's purchasing power.
Overall, Dian said that the weakening of the rupiah has not had a direct and significant impact on the stability of the financial services system.
Especially in the banking sector, this condition is supported by a low Net Foreign Exchange Position (PDN) and is far below the threshold set. In April 2026, PDN was at the level of 1.63 percent and a long position, far below the threshold of 20 percent.