JAKARTA - The Financial Services Authority (OJK) assesses that the impact of US President Donald Trump's policy needs to be monitored together, especially because of the increasing US import rates which will have an impact on global trade and can affect economic growth.
The Chief Executive of OJK Banking Supervision, Dian Ediana Rae, explained that the uncertainty of this global policy also affects exchange rate fluctuations, which will also affect the value of bank assets and obligations.
However, Dian said the national banking industry was still showing strong performance amid global pressure due to US President Donald Trump's economic policy and uncertainty in international supply chains.
According to him, although the increase in US import rates can affect global trade and the exchange rate, Indonesian banks remain resilient. This is reflected in the Neto Foreign Exchange Position (PDN) which was recorded at 1.55 percent as of February 2025, far below the 20 percent threshold, showing direct exposure to the risk of a relatively small exchange rate.
"This can be interpreted that the bank's direct exposure to the risk of exchange rates is relatively small, so that the weakening of the exchange rate will not have much direct effect on the bank balance sheet," he said in a written statement, April 28.
In addition, in terms of credit in foreign currency (valas), credit distributed to export-based activities also has revenue in the form of foreign currency, so it is naturally protected from the risk of exchange rate (naturally large).
Then, Dian conveyed that the position of the PDN bank was also in a long condition, which meant that it indicated that the direct exposure of banks in the form of foreign currency on the credit side and securities owned would actually increase the value of bank assets when there was rupiah depreciation, resulting in an increase in bank profitability.
Meanwhile, foreign lending growth was recorded at 16.30 percent (yoy), higher than the growth of foreign exchange third party funds (DPK) by 7.09 percent (yoy), so that the Loan to Deposit Ratio (LDR) was increased to 81.43 percent in February 2025 from 74.98 percent in February 2024.
In general, banking industry liquidity is also maintained with an LCR ratio of 210.14 percent, LDR of 87.67 percent, with Credit growth of 10.30 percent (yoy), and with DPK growth of 5.75 percent, and a stable ratio of non-performing loans (NPL) at 2.22 percent.
Then, the resilience of banks also remains strong as reflected in capital (CAR) which is at a high level of 26.98 percent.
Dian conveyed that global economic uncertainty, which was influenced by President Trump's tariff policy and disruption of international production supply chains, had put pressure on global economic stability.
"This condition also affects investor perceptions of the Indonesian economy, which is reflected in the movement of exchange rate volatility. However, this condition is also a momentum for strengthening policy coordination to increase competitiveness and maintain national macroeconomic stability," he said.
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Responding to global uncertainty, he said that the OJK encourages banks to strengthen risk management, carry out intensive portfolio monitoring.
In addition, the Bank is also asked to carry out a stress test with an in-depth scenario to be able to identify early conditions that need attention as well as prepare appropriate and measurable risk mitigation, in anticipation of the impact on market risk, credit risk, and also liquidity risk.
"Banking also needs to prioritize its business development strategy selectively and prudently," he said.
As is well known, US President Donal Trump has also postponed the implementation of tariffs and various efforts are still being made by many jurisdictions to discuss this matter.
Dian added that Islamic banking-funded debtors do not always have links to this issue and there are still many opportunities that can be utilized in today's international trade.
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