JOINT PRESS RELEASE
NATIONAL FINANCIAL SYSTEM STABILITY REMAINED WELL MAINTAINED, SUPPORTED BY POLICY COORDINATION AND SYNERGY AMONG AUTHORITIES,
TO SUSTAIN ECONOMIC GROWTH MOMENTUM
Nomor: 03/KSSK/Pers/2026
Jakarta, 3 August 2026
1. The KSSK assessment indicates that fiscal, monetary, and financial-sector conditions remained well maintained during the second quarter of 2026 amid the renewed escalation of geopolitical conflict, supported by close policy coordination and synergy among authorities. Entering the second quarter of 2026, external pressures intensified amid the escalation of geopolitical conflicts, rising energy prices, volatility in global financial markets, as well as pressures on exchange rates and capital flows. Nevertheless, the domestic economy continued to demonstrate resilience, as reflected in solid economic growth and a sound financial sector. Against this backdrop, external risks to macroeconomic and financial system stability must continue to be closely monitored in order to preserve strong economic growth momentum. KSSK, comprising the Minister of Finance, the Governor of Bank Indonesia (currently represented by the Acting Governor of Bank Indonesia), the Chairperson of the Board of Commissioners of the Financial Services Authority (OJK), and the Chairman of the Board of Commissioners of the Indonesia Deposit Insurance Corporation (LPS), will continue to closely monitor developments and conduct forward-looking assessments of economic and financial-sector performance amid rising global economic uncertainty, while undertaking coordinated mitigation measures among KSSK member institutions and with other ministries and agencies. This assessment is based on the Third Regular KSSK Meeting of 2026, held on Tuesday, 28 July 2026.
2. The global economy continued to face challenges during the second quarter of 2026 amid uncertainty surrounding geopolitical conflicts in the Middle East.The ongoing uncertainty has disrupted energy supplies, increased oil and strategic commodity prices, and heightened risks to global trade and supply-chain flows. These developments have exerted inflationary pressures and narrowed the room for monetary policy easing in several advanced economies. In the United States, expectations of further increases in the Federal Funds Rate (FFR) have strengthened amid rising inflation risks and uncertainty surrounding trade and fiscal policies, which have weighed on market sentiment. Financial-market volatility remained elevated, while flight-to-safety behavior intensified, as reflected in the strengthening U.S. dollar, rising U.S. Treasury yields, and pressures on capital flows to emerging market economies. Entering July 2026, global risks increased further as the U.S.-Iran conflict continued. Traffic through the Strait of Hormuz, which had briefly improved following the interim deal between the United States and Iran in mid-June 2026, has became disrupted following the re-escalation of military conflict between the two countries in early July 2026. In its July 2026 edition of the World Economic Outlook Update, the International Monetary Fund (IMF) projected global economic growth of 3.0% year-on-year in 2026, slightly lower than the 3.1% projection published in April 2026, amid renewed increases in global inflation.
3. Indonesia's economy is projected to continue growing strongly in the second quarter of 2026 despite global economic challenges. Household purchasing power remained resilient, supporting consumption, underpinned by the State Budget's role as a shock absorber through the effective implementation of social protection programs, food and energy price stabilization measures, job creation initiatives, and stimulus programs during the school holiday period. Investment is projected to remain strong, supported by high value-added downstreaming projects and infrastructure development under Government priority programs. Government consumption is also expected to post positive growth in line with accelerated spending on priority programs, the payment of the 13th-month salary for State Civil Apparatus personnel, and the disbursement of social assistance. Policy coordination between the Government and Bank Indonesia continued to be strengthened to maintain adequate liquidity in the economy and banking sector, as reflected in sustained growth in Primary Money (M0), which expanded by 15.4% year-on-year in the third week of July 2026, alongside improving banking intermediation. Manufacturing activity moderated at the end of the second quarter but returned to expansion territory in July 2026, with the Manufacturing PMI reaching 50.2, indicating renewed business optimism. Going forward, policy synergies among KSSK members will continue to be strengthened to sustain growth momentum. Supported by these policy synergies, full-year economic growth in 2026 is projected to reach 5.6-6.0% year-on-year, underpinned by coordinated policies of the Government and other KSSK members to preserve the continuity of growth momentum.
4. External resilience continues to be strengthened to mitigate spillover effects from heightened global uncertainty. Indonesia's trade balance recorded a surplus of USD3.58 billion during January-June 2026, although developments in June 2026 resulted in a deficit of USD0.45 billion. Foreign portfolio investment recorded net inflows of USD8.5 billion during the second quarter of 2026, primarily supported by Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI), with the trend continuing into the third quarter of 2026 amid rising yields on domestic financial instruments. The Rupiah appreciated to IDR17,994 per U.S. dollar as of 31 July 2026, following a period of depreciation since mid-July 2026 triggered by the renewed escalation of conflict in the Middle East and stronger market expectations of further increases in the Federal Funds Rate (FFR). Nevertheless, the Rupiah remained slightly weaker than its end-June 2026 level of IDR17,880 per U.S. dollar. Indonesia's foreign-exchange reserves remained adequate at USD145.6 billion at the end of June 2026, equivalent to 5.5 months of imports or 5.4 months of imports and Government external debt servicing, well above the international adequacy standard of approximately three months of imports.
5. Inflation remained within the target range in July 2026. Consumer Price Index (CPI) inflation in July 2026 was recorded at 2.88% year-on-year, lower than the 3.34% year-on-year recorded in the previous month. Core inflation remained stable at 2.76% year-on-year, supported by Bank Indonesia's consistent policy commitment to maintaining inflation within the target range. Inflation in the administered prices (AP) category increased to 3.58% year-on-year, reflecting adjustments in aviation fuel prices amid elevated global energy prices. Nevertheless, the Government continued to ensure that subsidized fuel prices remained affordable for the public. Meanwhile, inflation in the volatile food (VF) category moderated to 2.52% year-on-year, down from 5.58% year-on-year in the previous month, driven primarily by deflation in shallots, bird's eye chili, and red chili prices. Efforts to control inflation and preserve household purchasing power were further strengthened through various Government measures, including transportation fare discount programs during the school holiday period and food assistance programs. Going forward, inflation in 2026 and 2027 is projected to remain within the target range of 2.5±1%, supported by consistent monetary policy and Government price-control measures. In addition, synergies between the Government and Bank Indonesia through the Central and Regional Inflation Control Teams (TPIP/TPID), including the strengthened implementation of the Prosperous Food and Inflation Control Movement (GPIPS), will continue to support inflation stability within the target range, including in anticipation of weather-related risks associated with El Niño and their impact on food prices.
6. The Government Securities (SBN) market remained resilient amid heightened global uncertainty. The yield on the benchmark 10-year Government Security (SBN) increased by 31 basis points quarter-to-quarter to 7.14% at the end of the second quarter of 2026. The increase in yields was mainly driven by the escalation of conflict in the Middle East, which led to higher global oil prices and heightened concerns over future global inflationary pressures, prompting risk-off sentiment among investors in the SBN market. Despite these pressures, nonresident investors continued to record net purchases of IDR32.09 trillion in the SBN market during the second quarter of 2026, resulting in cumulative net purchases of IDR6.99 trillion year-to-date. As of 30 July 2026, nonresident investors recorded net purchases of IDR6.36 trillion month-to-date, bringing cumulative net purchases to IDR13.35 trillion year-to-date. During the same period, the yield on the 10-year SBN increased by 15 basis points month-to-date and 122 basis points year-to-date to 7.29%, amid continuing uncertainty in global financial markets due to the prolonged U.S.-Iran conflict following the ceasefire period and higher global crude oil prices. The increase in 10-year government bond yields since the beginning of the year was also observed across several emerging market economies, including Türkiye (+524 bps), the Philippines (+148 bps), Brazil (+106 bps), South Korea (+92 bps), Poland (+59 bps), and South Africa (+55 bps).
7. The realization of the State Budget (APBN) through the second quarter of 2026 continued to support economic growth and the achievement of national development priorities. The APBN continued to play a strategic role through strong State Revenue performance, productive State Expenditure, and prudent Budget Financing.
8. As of the end of the second quarter of 2026, State Revenue realization reached IDR1,459.4 trillion, recording strong growth of 21.4% year-on-year. Tax Revenue realization reached IDR1,035.7 trillion, representing robust growth of 24.6% year-on-year. This achievement was supported by improving economic conditions, the positive impact of Coretax implementation, as well as ongoing tax intensification and extensification efforts. Meanwhile, Customs and Excise Revenue showed signs of recovery, reaching IDR152.0 trillion, or growing by 3.4% year-on-year. The realization of Non-Tax State Revenue (PNBP) also remained on track, reaching IDR271.0 trillion, representing solid growth of 21.6% year-on-year.
9. State Expenditure performance became increasingly productive, reaching IDR1,656.0 trillion, or growing by 17.8% year-on-year as of the end of the second quarter of 2026. Central Government Expenditure amounted to IDR1,298.6 trillion, representing growth of 29.4% year-on-year. The realization of State Expenditure was supported, among others, by the implementation of the Free Nutritious Meals Program (MBG), the disbursement of social assistance programs, infrastructure development, the payment of religious holiday allowances (THR) and the 13th-month salary, pension benefit payments, as well as fuel and electricity subsidy and compensation expenditures.
10. Budget Financing continued to support credible and accountable APBN management. As of the second quarter of 2026, Budget Financing realization reached IDR452.0 trillion, representing growth of 59.4% year-on-year. This achievement was underpinned by prudent and well-measured debt financing management, while considering government liquidity conditions, optimal cash management, and developments in financial markets.
11. The APBN continued to be optimized to serve as a shock absorber, an agent of development, and a means of protecting the poor. As a shock absorber, the Government maintained household purchasing power as well as fuel and food price and supply stability through subsidy and compensation programs, with realizations amounting to IDR116.0 trillion and IDR116.9 trillion, respectively. As an agent of development, the State Budget was directed toward accelerating the implementation of priority programs, including the Free Nutritious Meals Program (MBG), which realized spending of IDR101.1 trillion benefiting 63.13 million beneficiaries, and the People's Schools Program, which recorded realization of IDR13.1 trillion for the development of 104 permanent schools. The State Budget also continued to fulfil its social protection function for poor and vulnerable households through various programs, including the Family Hope Program (PKH), Basic Food Assistance Cards (Kartu Sembako), and the Indonesia Smart Program (PIP), with realizations reaching IDR14.5 trillion, IDR19.7 trillion, and IDR8.8 trillion, respectively. To maintain growth momentum, the Government also implemented various stimulus measures aimed at supporting business continuity and economic activity, including tax incentives for national authors, transportation fare discounts during the Eid-Fitr and school holiday periods, as well as internship and vocational training programs.
12. Bank Indonesia (BI) continued to strengthen its policy mix to maintain Rupiah exchange-rate stability and keep inflation within the 2026-2027 target range of 2.5±1% set by the Government, while supporting economic growth through close coordination and synergy with the Government's Asta Cita Program and preserving financial system stability. Monetary policy during the second quarter of 2026 was directed toward strengthening stability (pro-stability) through adjustments to the BI-Rate, optimization of foreign-exchange market interventions, incentives to encourage foreign portfolio inflows, management of adequate liquidity in money markets and the banking system, acceleration of money and foreign-exchange market deepening, and strengthened implementation of prudential principles in foreign-exchange transactions. Accommodative macroprudential policy continued to be reinforced to support economic growth (pro-growth) through increased lending and financing to the real sector, particularly Government priority sectors, as well as through enhanced liquidity and reduced liquidity segmentation in money and banking markets via the expansion of the Macroprudential Liquidity Incentive Policy (KLM), while maintaining financial system stability. Meanwhile, payment-system policy continued to support economic activity through the expansion of digital-payment acceptance, strengthening of the payment-system industry structure, and enhancement of the reliability and resilience of payment-system infrastructure.
13. Consistent with the above policy mix, BI implemented the following monetary policy measures:
1) BI pursued a pre-emptive and forward-looking interest-rate policy to strengthen Rupiah exchange-rate stability and maintain inflation within the Government's target range for 2026-2027. BI raised the BI-Rate by 50 basis points to 5.25% at the May 2026 Board of Governors Meeting (RDG), by 25 basis points to 5.50% at the Weekly Board Meeting held on 9 June 2026, and by a further 25 basis points to 5.75% at the June 2026 RDG. At the July 2026 RDG, BI maintained the BI-Rate at 5.75% while expanding incentive policies and other measures aimed at increasing foreign portfolio inflows, strengthening Rupiah exchange-rate stability, accelerating money and foreign-exchange market deepening (PUVA), and enhancing liquidity while reducing liquidity segmentation in money and banking markets. The BI-Rate decision and accompanying policy measures formed an integral part of Bank Indonesia's policy mix, which remains consistently focused on further strengthening Rupiah exchange-rate stability amid persistently high global uncertainty and maintaining inflation within the Government's target range of 2.5±1% in both 2026 and 2027 (pro-stability).
2) BI strengthened the effectiveness of monetary policy implementation through the optimization of foreign-exchange interventions, including Non-Deliverable Forward (NDF) transactions in offshore markets as well as spot and Domestic Non-Deliverable Forward (DNDF) transactions in the domestic market. Monetary operations were also strengthened through interest-rate structure management in money markets in line with the BI-Rate and pro-market monetary-operation instruments.
3) BI expanded incentive policies to encourage foreign portfolio investment inflows, strengthen Rupiah exchange-rate stability, and accelerate PUVA deepening through:
i. Increased and expanded premium-reduction incentives for foreign portfolio investment in the form of: (a) an increase in incentives for Hedged Sell Swaps (Hedged Buy Swaps with Bank Indonesia) from 10% to 12.5%; and (b) an expansion of incentives for Hedged Sell DNDF transactions of 15%;
ii. Incentives to promote Local Currency Transactions (LCT) with partner countries for greater foreign-exchange transaction diversification through: (a) an additional premium of 10% for Hedged Buy Swaps (Hedged Sell Swaps with Bank Indonesia); and (b) a 10% reduction in premiums for Hedged Sell DNDF transactions.
4) BI maintained adequate liquidity in money markets and the banking sector through the reopening of auction windows for repurchase agreement (repo) instruments with tenors of 3, 6, 9, and 12 months, as well as measured purchases of SBN in the secondary market. Total SBN purchases throughout 2026 up to 31 July 2026 reached IDR195.25 trillion, including IDR79.59 trillion purchased in the secondary market. These measures supported sustained double-digit growth in Primary Money (above 10%) and ensured adequate liquidity in the economy.
5) BI strengthened money and foreign-exchange market deepening policies to create a more advanced, efficient, and prudent market environment that enhances foreign-investor attractiveness and improves monetary policy effectiveness, including Rupiah exchange-rate stabilization, through:
i.further expansion of offshore Chinese Renminbi (CNH)-Rupiah transactions using spot and swap instruments in the domestic foreign-exchange market, in line with the broader use of LCT for trade and investment settlements;
ii. broader participation by banks in offshore foreign-exchange NDF selling transactions against the Rupiah for Primary Dealers in the Money and Foreign Exchange Market (PUVA) that meet Bank Indonesia requirements; and
iii. strengthened prudential principles in money and foreign-exchange markets through: (1) the gradual reduction of the threshold for cash foreign-exchange purchases against Rupiah without underlying transactions to USD25,000 per customer per month beginning in June 2026 and further to USD10,000 effective 1 July 2026; and (2) the adjustment of supporting-document requirements for outward foreign-currency transfers from amounts exceeding the equivalent of USD50,000 to amounts exceeding USD25,000, effective 1 July 2026. Supervision of banks and corporations with significant U.S. dollar purchasing activities was also strengthened through coordination with OJK.
14. In the macroprudential policy area, accommodative measures continued to be strengthened to enhance liquidity-management flexibility and support banking intermediation while maintaining financial system stability, through:
1) Enhancing liquidity expansion and addressing liquidity segmentation in money and banking markets by refining the KLM and integrating it with the acceleration of money-market deepening, through:
a. broadening the range of underlying assets eligible for conventional and sharia monetary-operation repo transactions by including bonds and/or sukuk issued by PT SMI and PT SMF, to be implemented no later than the end of September 2026; and
b. refinement of the KLM framework, effective from 1 September 2026, through: a) increasing the maximum total KLM incentive available to banks to 6.0% of third-party funds (DPK) from the previous 5.5%; b) adjusting the allocation of KLM incentives under the financing channel for lending and financing to priority sectors to a maximum of 4.0% of DPK, from the previous maximum of 4.5%; and c) introducing a Money Market Deepening (PPU) KLM allocation of up to 2.0% of DPK for banks that maintain an optimal ratio of securities holdings as determined by Bank Indonesia, aimed at reducing liquidity segmentation and accelerating money-market development.
As of the first week of July 2026, total KLM incentives received by banks reached IDR431.9 trillion, consisting of IDR369 trillion through the lending channel and IDR62.9 trillion through the interest-rate channel. By bank category, KLM incentives were distributed as follows: state-owned banks (IDR219.6 trillion), private national banks (IDR172.5 trillion), regional development banks (IDR31.7 trillion), and foreign bank branch offices (IDR8.1 trillion). By sector, KLM incentives were directed toward priority sectors, including agriculture; industry and downstreaming; services, including the creative economy; construction, real estate and housing; as well as MSMEs, cooperatives, financial inclusion, and sustainable sectors;
2) Relaxing the Macroprudential Intermediation Ratio (RIM) policy by broadening the scope and strengthening eligibility criteria for corporate securities and sharia securities owned and issued by banks as components of the RIM calculation, effective from 1 July 2026;
3) Strengthening the Macroprudential Inclusive Financing Ratio (RPIM) policy, effective from 1 October 2026, to encourage bank lending and financing to inclusive and sustainable sectors while upholding prudential principles, through three modalities: a) expanding the scope of eligible lending and financing, including financing extended to suppliers, distributors, and/or business partners of enterprises supporting inclusive sectors and national economic growth; b) broadening interbank MSME lending cooperation mechanisms through channeling and executing schemes; and c) strengthening contract-based RPIM transfer mechanisms among banks;
4) Increasing the Foreign Funding Ratio (RPLN) from a maximum of 35% to 40% of bank capital, effective from 1 July 2026, to expand banking funding sources, particularly from abroad, while maintaining prudential safeguards;
5) Reinforcing accommodative macroprudential policies by maintaining: (i) the Countercyclical Capital Buffer (CCyB) ratio at 0%; (ii) the RIM within the 84-94% range; (iii) the Loan-to-Value/Financing-to-Value (LTV/FTV) ratio for property lending at a maximum of 100% and the minimum down-payment requirement for motor vehicle loans at 0%, effective from 1 January to 31 December 2026; and (iv) the Macroprudential Liquidity Buffer (PLM) ratio at four percent with four percent repo flexibility, and the Sharia PLM ratio at 2.5% with 2.5% repo flexibility;
6) Strengthening policy coordination with the Government, including close synergy between monetary and fiscal policies to mitigate the impact of global uncertainty on the domestic economy, as well as coordination within KSSK to maintain financial system stability and support financing for Asta Cita programs, including through the Indonesia Intermediation Acceleration Program (PINISI);
7) Directing macroprudential policy support toward MSMEs through: (i) KLM incentives for MSMEs, cooperatives, inclusion, and sustainable sectors of up to one percent of DPK; (ii) strengthened RPIM policies to encourage greater bank contributions to MSMEs financing and development; and (iii) the development of regional MSMEs business models, particularly in food agriculture and export commodity sectors.
15. Payment-system policy continued to be directed toward supporting and strengthening household purchasing power while fostering innovation in line with risk-management principles and payment-system stability,through:
1) The extension of credit card and National Clearing System of Bank Indonesia (SKNBI) policies through 31 December 2026, including a minimum credit-card payment requirement of five percent of total outstanding balances and a maximum late-payment penalty of one percent of total outstanding balances (not exceeding IDR100,000), as well as SKNBI transaction fees of one rupiah from Bank Indonesia to banks and a maximum of IDR2,900 from banks to customers;
2) The expansion of digital-payment acceptance through the development of payment instruments and channels, as well as the expansion of cross-border QRIS cooperation with priority partner countries and the QRIS Indonesian Culinary Journey 2026 Program, with a target of 47 million QRIS merchants in 2026, to promote an inclusive digital economy and finance ecosystem, including for MSMEs;
3) Strengthening innovation and entrepreneurship through intensified business-matching initiatives under the Indonesia Digital Innovation Center (PIDI) Digdaya x Hackathon Program to support the development of national digital talent, as well as through synergies with the Government under the Capacity Building and Literacy Program for the Synergy of Regional Digitalization Acceleration and Expansion (KATALIS P2DD) and PIDI initiatives;
4) Strengthening the implementation of payment-system industry restructuring through the development of activities, products, and cooperation arrangements that comply with risk-management requirements and are aligned with BI's policy direction.
16. Meanwhile, BI continued to strengthen and expand international cooperation in central banking areas, including payment-system connectivity and local currency transactions, as well as facilitating investment and trade-promotion activities in priority sectors in collaboration with relevant institutions.
17. The domestic capital market underwent a consolidation phase during the second quarter of 2026 but began to show signs of recovery at the beginning of the third quarter of 2026. The Indonesia Composite Index (IHSG) closed at 5,643.19 at the end of the second quarter of 2026, correcting by 19.93% quarter-to-quarter amid heightened global uncertainty and investor portfolio rebalancing. Entering July 2026, the index began to recover and, as of 31 July 2026, closed at 6,236.13, representing a 10.51% month-to-date increase. The performance of investment-management industry continued to demonstrate resilience, with mutual fund Net Asset Value (NAV) reaching IDR652.90 trillion at the end of the second quarter of 2026. The positive trend continued into July, with mutual fund NAV recorded at IDR663.26 trillion as of 30 July 2026, representing growth of 1.59% quarter-to-quarter.
18. Fundraising activity by domestic corporations in the capital market remained solid. The domestic capital market continued to play an important role as a source of long-term financing for businesses. As of 31 July 2026, total capital-market fundraising had reached IDR113.13 trillion year-to-date, reflecting sustained fundraising interest, particularly through the issuance of Debt Securities and/or Sukuk (EBUS) amounting to IDR98.27 trillion.
19. Banking-sector intermediation performance remained contributive, supported by a well-maintained risk profile. Bank lending in June 2026 recorded growth of 12.67% year-on-year, reaching IDR9,080.9 trillion, driven primarily by strong investment lending growth of 24.90% year-on-year, followed by working capital loans, which grew by 8.94% year-on-year, while consumer lending expanded by 5.75% year-on-year. Meanwhile, asset quality remained well maintained, with the gross Non-Performing Loan (NPL) ratio recorded at 2.09% and the net NPL ratio at 0.82%. The Loan at Risk (LaR) ratio also remained relatively stable at 8.47%. On the funding side, banking-sector DPK grew by 10.21% year-on-year to IDR10,281.8 trillion, with demand deposits, savings deposits, and time deposits growing by 9.95%, 8.25%, and 12.16% year-on-year, respectively.
20. Banking sector resilience remained strong, as reflected in the Capital Adequacy Ratio (CAR), which stood at a high level of 23.70% in June 2026. Banking sector liquidity remained adequate in June 2026, with the Loan-to-Deposit Ratio (LDR) recorded at 88.32%. The Liquid Assets-to-Non-Core Deposits (AL/NCD) ratio and Liquid Assets-to-Third-Party Funds (AL/DPK) ratio stood at 101.92% and 23.08%, respectively, both significantly above the applicable regulatory thresholds of 50% and 10%, respectively.
21. In the Insurance, Guarantee, and Pension Fund (PPDP) sector, overall, capitalization in the commercial insurance industry remained adequate and sound, with the Risk-Based Capital (RBC) ratio for the life insurance industry recorded at 461.94%, while the ratio for the general insurance and reinsurance industry stood at 318.52%, both significantly above the regulatory minimum threshold of 120%. In the pension fund industry, total pension fund assets reached IDR1,680.57 trillion in June 2026, representing growth of 6.47% year-on-year, while assets under voluntary pension fund programs amounted to IDR407.33 trillion, growing by 4.06% year-on-year. Meanwhile, total assets of guarantee companies contracted by 3.05% year-on-year to IDR45.83 trillion.
22. In the Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) sector, financing of financing institutions continued to record positive growth. It grew by 1.88% year-on-year in June 2026, reaching IDR511.26 trillion, supported primarily by working capital financing, which expanded by 6.36% year-on-year. The risk profile of finance companies remained well maintained, with gross Non-Performing Financing (NPF) recorded at 3.01% and net NPF at 0.81%. The gearing ratio of finance companies also remained at a prudent level of 2.12 times, well below the regulatory maximum limit of ten times. In the peer-to-peer lending industry, outstanding financing grew by 25.88% year-on-year to IDR105.14 trillion, while the aggregate non-performing financing risk level (TWP90) remained manageable at 4.26%.
23. As of June 2026, a total of 1,272 crypto assets had been approved for trading. OJK has granted licenses to 32 entities within the crypto-asset trading ecosystem, comprising two crypto exchanges, two clearing and settlement institutions, two custodial service providers, and 26 digital financial asset traders. In addition, the number of crypto-asset investors continued to increase, reaching 22.69 million investors as of June 2026. The value of crypto-asset transactions during June 2026 was recorded at IDR28.58 trillion.
24. In response to global developments and in consideration of domestic economic and market conditions, OJK has implemented the policy measures to maintain financial system stability and support economic growth, including the following:
a. To strengthen the national credit information infrastructure and improve the quality of debtor information in support of lending to productive sectors, including MSMEs and housing programs, OJK has optimized the Financial Information Service System (SLIK) through accelerated updating of credit or financing information by Financial Services Business Actors (PUJK), requiring updates no later than three business days after loan repayment, and by implementing a debtor-information threshold for amounts above IDR1 million, effective from 1 July 2026.
b. OJK supports the strengthening of the Natural Resource Export Proceeds (DHE SDA) policy through the implementation of Government Regulation No. 21 of 2026 concerning DHE SDA, including oversight of DHE SDA escrow accounts, ensuring the readiness of the banking industry, and strengthening coordination with relevant ministries and agencies. OJK also reaffirms that DHE SDA funds may be treated as cash collateral.
c. OJK and the Self-Regulatory Organizations (SROs) will continue to consistently and prudently implement programs under the Action Plan for the Acceleration of Indonesia Capital Market Integrity Reform, while addressing improvement areas in coordination with relevant stakeholders.
d. Efforts to strengthen institutional capacity and deepen financial markets continue to be accelerated. OJK has issued regulations aimed at strengthening business classifications, capitalization, governance, and resilience of securities companies and investment managers, as well as regulations to support the further development of the Carbon Exchange in line with the Carbon Economic Value policy framework. In addition, OJK has issued the 2026-2030 Roadmap for the Development of Capital Market Instrument-Based Derivatives Markets and the 2026-2030 Indonesia Sustainable Capital Market Roadmap.
e. OJK has strengthened consumer protection by promoting clear, accurate, honest, accessible, and non-misleading financial-sector information practices, as stipulated in OJK Regulation No. 6 of 2026 concerning the Conduct of Financial Sector Information Communicators (Financial Influencers).
25. Deposit growth remained resilient across all deposit-tier categories. As of June 2026, annual deposit growth across deposit-tier categories remained positive, ranging from 0.78% to 15.44% year-on-year. Although large-tier deposits continued to dominate both in terms of share and growth trends, deposits below IDR100 million, which are predominantly held by individuals and households, recorded improved growth of 5.16% year-on-year, compared with 1.84% year-on-year in the previous quarter (March 2026). This indicates that the saving capacity of households in this segment has remained relatively resilient over time. More granular data for individual and household deposits with balances below five million rupiah and between five million rupiah and ten million rupiah showed even stronger annual growth in the second quarter of 2026, at 7.36% year-on-year and 10.01% year-on-year, respectively, compared with 2.02% year-on-year and 1.76% year-on-year in the previous quarter. The improvement in household deposit performance also points to a strengthening retail funding base amid the rising interest-rate environment. From a funding-stability perspective, this development is encouraging, as deposit growth has not been driven solely by large depositors but has also been supported by relatively stable retail deposits, thereby strengthening the structure of banking sector funding.
26.LPS continues to strengthen public confidence through the implementation of deposit insurance programs and effective bank resolution measures.
a. From the deposit insurance perspective, the proportion of insured accounts remained consistently above 90% for both commercial banks and rural banks/sharia rural banks (BPR/BPRS). As of June 2026, the proportion of fully insured commercial-bank accounts up to two billion rupiah reached 99.94%, equivalent to approximately 696 million accounts, while the corresponding figure for BPR/BPRS reached 99.97%, equivalent to approximately 15.5 million accounts. Meanwhile, the number of unbanked individuals is projected to decline to 46.5 million people by the end of 2026, compared with 49.7 million people at the end of 2025.
b. Monitoring through June 2026 indicated that the proportion of commercial-bank deposits earning interest rates above the Deposit Insurance Rate (TBP) continued to increase, exceeding 34% of total deposits. Corporate deposits accounted for the largest share, representing more than 51%, or approximately IDR1,843 trillion, of total deposits above the TBP, which amounted to IDR3,594 trillion. This development was partly driven by banks' adjustments to higher policy interest rates and increased yields on financial-market investment instruments. In response, LPS, together with other KSSK member institutions, continues to encourage deposit-rate adjustments from rising further through strengthened fiscal, monetary, and financial-sector policy coordination.
c. From the bank resolution perspective, LPS continued to implement effective resolution and liquidation measures. During the first half of 2026, LPS completed the liquidation of seven BPR/BPRS, while 18 additional BPR/BPRS remained in the liquidation process, with an average liquidation period of approximately 21 months. During the same period, eight BPR/BPRS were placed into liquidation, involving total eligible deposits amounting to IDR1.6 trillion across 48,733 accounts. Deposits falling within the deposit insurance coverage limit (up to two billion rupiah) amounted to IDR412.20 billion. For BPR/BPRS institutions resolved and liquidated by LPS, the majority of cases were attributable to weak bank governance, internal disputes, and violations of banking regulations, including fraud.
27. Following the amendment of Law No. 4 of 2023, LPS continues preparations for the Policyholder Guarantee Program (PPP), which is scheduled to be implemented no later than January 2028.
28. KSSK remains committed to continuously strengthening synergies, enhancing coordinated policy responses, and maintaining vigilance in mitigating various risks that may affect the economy and financial system stability. KSSK also reaffirms its commitment to supporting the real sector, the Government’s Asta Cita agenda, and other priority programs in order to promote sustainable economic growth and achieve national prosperity.
29. The Government, BI, OJK, and LPS remain committed to finalizing the implementing regulations mandated under the Financial Sector Development and Strengthening Law (UU P2SK), as amended by Law No. 4 of 2026, in a credible and inclusive manner involving relevant stakeholders, including financial industry participants and the broader public.
30. KSSK will convene its next regular meeting in October 2026.
For further information:
sekretariatkssk@kemenkeu.go.id