Amid global uncertainty and signs of a domestic slowdown, the Financial Services Authority (OJK) remains optimistic that the banking sector will stay stable, with risk profiles well contained through the end of the year despite a June 2025 deceleration.

National bank lending reached Rp8,060 trillion in June 2025, up 7.77% year on year (YoY), a slower pace than May’s 8.43% YoY growth.

OJK Chief Executive for Banking Supervision Dian Ediana Rae said that by loan purpose, investment loans recorded the fastest growth at 12.53%, followed by consumer loans at 8.49%, while working-capital loans rose 4.45% YoY.

By ownership, domestic national private banks posted the strongest lending growth at 10.78% YoY. By borrower category, corporate loans increased 10.78%, while MSME loans rose 2.18% amid banks’ focus on improving MSME credit quality.

By sector, lending to mining and quarrying grew the most at 20.69% YoY.

Services expanded 19.17% YoY, transportation and communications 17.94% YoY, and electricity, gas, and water 11.23% YoY.

“Viewed by economic sector, lending to several segments grew at double-digit rates,” Dian said at OJK’s Monthly Press Conference in Jakarta on August 4, 2025.

On funding, third-party funds (DPK) rose 6.96% YoY to Rp9,329 trillion. Current accounts increased 10.35%, savings 6.84%, and time deposits 4.19%.

He noted that Bank Indonesia’s policy rate cuts have helped push down bank lending rates, while average deposit rates also began to trend lower from the previous month.

Liquidity remained adequate in May 2025, reflected in the liquid assets to non-core deposits (AL/NCD) ratio at 118.78% and the liquid assets to third-party funds (AL/DPK) ratio at 27.05%—well above the respective minimum thresholds of 50% and 10%.

Asset quality also stayed sound, with the gross non-performing loan (NPL) ratio at 2.22% and net NPL at 0.84%. The loan-at-risk (LAR) ratio fell to 9.73%, which Dian said has returned to pre-pandemic levels. Capital buffers remain strong, with the capital adequacy ratio (CAR) at a high 25.81%.

Bank Performance Remains Solid

The sector’s stability is mirrored in banks’ positive results. PT Bank Central Asia Tbk (IDX: BBCA) and subsidiaries booked 12.9% YoY loan growth to Rp959 trillion as of June 2025, supported by disbursements across segments and healthy liquidity.

Aligned with higher lending, funding, and transaction volumes, BCA’s consolidated net profit rose 8% YoY to Rp29 trillion in the first half of 2025.

“BCA’s loan growth was positive across segments—from corporate and MSME to consumer. We continue to lend prudently, upholding strong risk management discipline,” said BCA President Director Hendra Lembong.

BCA’s corporate loans grew 16.1% YoY to Rp451.8 trillion; commercial loans rose 12.6% YoY to Rp143.6 trillion; and SME loans increased 11.1% YoY to Rp127 trillion. Supported by mortgages up 8.4% to Rp137.6 trillion and auto loans up 5.2% to Rp65.4 trillion, total consumer loans grew 7.6% YoY to Rp226.4 trillion. Other consumer lending—largely credit cards—rose 9.4% YoY to Rp23.4 trillion. Asset quality remained solid, with LAR at 5.7% in H1 2025 (improving from 6.4% a year earlier) and NPL at 2.2%. Coverage for NPL and LAR stood at 167.2% and 68.7%, respectively.

State-owned PT Bank Rakyat Indonesia (Persero) Tbk (BRI) also reported resilient performance in Q2 2025. BRI Group’s net profit reached Rp26.53 trillion, with assets of Rp2,106.37 trillion—up 6.52% YoY through the second quarter.

President Director Hery Gunardi said BRI will continue to strengthen performance through its ongoing transformation, “BRIVolution Reignite.”

“BRI will improve its funding structure to drive healthy CASA growth via deposit segmentation, product simplification, current-account acceleration, stronger digital channels, and brand reinforcement to solidify our position in retail and wholesale markets,” he said in a written statement.

He added that the transformation will also focus on strengthening the core business and developing new growth engines.

“BRI is reviewing the micro business model, refining processes, enhancing ‘mantri’ capabilities, and expanding pawn/bullion services. We will also reinforce our dominance in payroll services, grow the mid-market, and accelerate the commercial segment,” Hery said.