Indonesia\u2019s financial regulator
\nprojects stronger results for the banking industry in the second
\nhalf of 2025, underpinned by recent interest rate reductions and
\nprudent yet growth-oriented lending, according to the Financial
\nServices Authority (OJK), Indonesia Business Post
\nreports.<\/p>\n
\nFindings from OJK\u2019s Banking
\nBusiness Orientation Survey (SBPO) for the third quarter, published
\non August 24, indicate that commercial lenders remain upbeat,
\nciting expectations of more stable domestic economic conditions and
\ncontained risks.<\/p>\n
\n\u201cShifts in the global economy and
\ndomestic macro indicators are prompting banks to pursue a more
\nmeasured lending strategy aligned with their business plans.
\nHowever, Bank Indonesia\u2019s recent rate cuts have provided positive
\nimpetus,\u201d OJK\u2019s chief banking supervisor, Dian Ediana Rae, said in
\na statement.<\/p>\n
\nAs of August 2025, the central
\nbank had lowered its policy rate by a cumulative 100 basis points
\n($1 equivalent in monetary policy terms, moving from 6% to 5%).
\nAverage rupiah lending rates slipped by seven basis points
\nyear-on-year in July, particularly for productive loans, offering
\nscope for greater credit distribution and profitability.<\/p>\n
\nOJK noted that banks\u2019 capacity to
\nreduce lending costs remains linked to their funding structure,
\ngiven their reliance on time deposits within third-party funds.
\nStill, deposit growth is expected to be sustained by corporate
\ninflows, initiatives to expand low-cost funding, and transfers of
\ncentral government deposits to regional banks in the third
\nquarter.<\/p>\n
\n\u201cBanks should reinforce funding
\nstrategies, particularly by strengthening low-cost deposit bases,
\nin order to provide room for further rate adjustments,\u201d Dian said.
\nOJK emphasised it will continue overseeing risks to maintain
\nfinancial stability, safeguard public confidence, and ensure the
\nsector supports broader economic activity.<\/p>\n
\nIn July 2025, total bank lending
\ngrew 7.03% y\/y, supported by healthy asset quality. Non-performing
\nloans stood at 2.28%, slightly higher than January\u2019s 2.18%, while
\nloans at risk dropped to 9.68%, below pre-pandemic
\nlevels.<\/p>\n
\nInvestment lending led the
\nexpansion, rising 12.42% y\/y, with strong demand from mining and
\nplantation sectors, as well as transport, manufacturing, and social
\nservices. Deposits increased 7% in the same period, bolstering
\nliquidity positions.<\/p>\n
\nLiquidity metrics remained well
\nabove regulatory thresholds, with banks\u2019 liquid assets-to-non-core
\ndeposits ratio at 119.43% and liquid assets-to-third-party funds
\nratio at 27.08%. Meanwhile, the capital adequacy ratio (CAR) stood
\nat 25.81% in June, highlighting the system\u2019s resilience against
\nglobal headwinds.<\/p>\n
\n\u201cThe figures reaffirm the
\nsector\u2019s solid footing, supported by strong governance and careful
\nintermediation. Growth momentum is expected to continue, driven by
\nimproved sentiment,\u201d Dian said.<\/p>\n
\u00a9 2025 bne IntelliNews, source Magazine<\/p>\n","protected":false},"excerpt":{"rendered":"Indonesia\u2019s financial regulator projects stronger results for the banking industry in the second half of 2025, underpinned by…\n","protected":false},"author":2,"featured_media":8796,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46,100],"class_list":["post-98637","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/98637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=98637"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/98637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/8796"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=98637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=98637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=98637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}