Jakarta. The Financial Services Authority (OJK) said Indonesia’s banking sector remains solid in the third quarter of 2025. Despite global pressures on emerging markets, the country’s financial system stays stable and efficient.

According to Defri Andri, OJK’s Deputy Commissioner for the Supervision of State-Owned and Sharia Banks, credit growth in August 2025 is projected to reach 7.5 percent year-on-year, an increase from the previous month. This, he said, reflects the banking sector’s robust intermediation function, maintaining prudent credit expansion while safeguarding financial health.

“Credit quality remains well within safe limits,” Defri said at the Investor Daily Summit in Jakarta, Wednesday. “Gross non-performing loans (NPL) stand at 2.28 percent, while net NPL is 0.87 percent.”

Liquidity indicators also remain strong. The liquid assets-to-deposits ratio stands at 27.25 percent, far above the 10-percent minimum requirement. Meanwhile, the liquid assets-to-non-core deposits ratio is 120 percent, double the regulatory threshold.

Savings growth has reached 8.51 percent, surpassing credit growth, a sign that banks maintain a comfortable liquidity buffer to support further lending to the real sector. The Loan-to-Deposit Ratio (LDR) has eased slightly from 86.03 percent to 85.55 percent, indicating stronger liquidity conditions and room for future credit expansion.

OJK emphasized that its policy direction for the financial sector will remain adaptive and forward-looking, with macroprudential strategies focused on systemic stability, inclusive intermediation, and stronger support for MSMEs.

The regulator is also accelerating the digital transformation of Indonesia’s banking industry, in line with the Indonesian Banking Development Roadmap 2020–2025. 

“The digital economy and financial technology are integral parts of the future of Indonesia’s banking sector,” Defri said. “OJK encourages the industry to be well-prepared in governance, infrastructure, and risk management.”