OJK Projects Indonesia's Banking Growth to Remain Positive in 2026

Head of the OJK Banking Supervisory Executive Dian Ediana Rae. (OJK)

JAKARTA - The Financial Services Authority (OJK) projects that Indonesia's banking sector will remain positive in 2026.

The Head of the OJK Banking Supervisory Executive, Dian Ediana Rae, conveyed this optimism was driven by the forecast of a sustained decline in global and domestic interest rates, which is expected to increase third-party fund raising (DPK) and reduce funding costs.

"If the fund-raising is positive enough, the availability of liquidity will be maintained and help banks in carrying out credit distribution," he explained in his statement, Sunday, December 21.

Dian said that the decline in global interest rates is also expected to increase credit demand for various economic interests, so that credit growth is expected to remain strong.

In addition, OJK projects the banking non-performing loan (NPL) ratio to remain low, in the range of plus or minus 2 percent, although pressure is still coming from the SME credit segment.

He said that this sector is one of the fastest growing sectors during an expanding economy, but is also the most vulnerable when macro conditions weaken.

Dian said that the implementation of various government programs as well as fiscal, trade, industrial, and investment policy support is expected to increase the multiplier effect on household consumption and business investment, thereby encouraging bank credit demand.

Based on the Bank's Business Plan report submitted at the end of November 2025, credit growth in 2026 is expected to increase slightly compared to 2025.

"Global and domestic interest rate reduction space is still available next year, so it is expected to have a positive impact on DPK growth and liquidity availability and help banks in implementing credit distribution," he said.

He added that the banking resilience shown by the capital adequacy ratio was also projected to remain strong, serving as a buffer against global economic uncertainties while supporting banking sector growth.