LPS Boss Says Indonesia's Financial System Grows Amid Global Economic Dynamics

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive. (Photo: ANTARA)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadivewa called for his optimism for the Indonesian financial system.

Purbaya said that Indonesia's financial system in the midst of the dynamics of the global economy continues to grow and is relatively more resilient.

"One of them, we ourselves see how the banking sector and financial institutions continue to transform, and, we also want to play a more strategic role to always maintain public trust and support financial system stability," he said in a statement to the media, Thursday, August 7.

Currently, he continued, the banking industry remains strong with adequate liquidity, even in the midst of shocks due to external uncertainty, national banking remains solidly supported by strong capital.

The Capital Adequacy Ratio (CAR) continues to grow positively, where in June CAR grew 25.81, compared to last May's 25.48 percent.

As of June 2025 credit grew 7.77 percent yoy while the DPK grew 6.96 percent yoy. The gross NPL was at a controlled level of 2.22 percent in June 2025.

Then, banking deposits also grew positively in all tiers, including tier deposits with a balance of less than IDR 2 billion, an increase of IDR 143.22 trillion yoy and tier with a balance of more than IDR 2 billion, an increase of IDR 459.49 trillion.

Furthermore, Purbaya stated, Indonesia's economic strength stems from the large domestic demand.

Menurut dia, ini potensi yang tidak boleh dilupakan. Kontribusi PDB nasional para kuartal II 2025 yang terbesar berasal dari konsumsi (62,53 persen) yang terdiri dari konsumsi rumah tangga, LNPRT, dan pemerintah.

Pada kuartal II 2025 tersebut, pertumbuhan Pembentukan Modal Tetap Bruto (PMTB) yang relatif pesat cukup mengimbangi kontraksi pengeluaran pemerintah. total kontribusi domestic demand yang besar akan dapat meredam gejolak eksternal.

According to him, this is a potential that should not be forgotten. The largest national GDP contribution of the second quarter of 2025 comes from consumption (62.53 percent) consisting of household consumption, LNPRT, and the government.

In the second quarter of 2025, the relatively rapid growth in Gross Fixed Capital Formation (PMTB) will offset the contraction in government spending. The total large domestic demand contribution will be able to reduce external turmoil.