Jakarta. Indonesia’s financial regulator plans to revise banking rules this year to encourage lenders to support government priority programs, including housing, while allowing banks to decide lending strategies based on their own risk assessments.

The Financial Services Authority (OJK) said the revised regulation on bank business plans, or RBB, is expected to be issued in the third quarter of 2026.

OJK Chairwoman Friderica Widyasari Dewi said the changes are aimed at making bank lending plans more focused, measurable, and sustainable, particularly in supporting sectors prioritized by the government.

One of the opportunities identified by regulators is President Prabowo Subianto’s program to build 3 million homes, which is expected to create substantial demand for mortgage and construction financing.

Friderica stressed that the policy would not require banks to lend to specific sectors or projects.

“I want to clarify again, nothing is mandatory. Banks will still have the flexibility to implement their own lending strategies according to their respective risk appetite and risk tolerance,” she said during a press conference by Indonesia’s Financial System Stability Committee in Jakarta on Thursday.

She added that lending decisions must continue to follow prudent banking principles because banks manage public funds and must prioritize asset quality and financial stability.

Indonesia’s banking sector has continued to post steady loan growth despite ongoing global economic uncertainty.

OJK data showed bank lending grew 9.49 percent year-on-year in March to Rp 8,659 trillion rupiah ($525 billion), while non-performing loan ratios remained stable.

The regulator also said Indonesia’s banking industry remains resilient, supported by strong capital buffers and ample liquidity conditions.