In line with improving global economic performance, the Indonesian banking sector continued to post solid loan growth, rising by 7.36% yoy in October 2025, supported by investment loans (15.72% yoy). Meanwhile, Deposits grew by 11.48% yoy, primarily contributed by demand deposits (15.53% yoy), resulting in a Loan to Deposit Ratio (LDR) of 84.26%.

The Banking sector was well capitalized, with a CAR level of 26.38% and ample liquidity as reflected in both Liquid Assets/Non-core Deposits (LA/NCD) and LA/Third-Party Funds (LA/TPF), which were well above the 50% and 10% thresholds at 130.97% and 29.47%, respectively. 

The profitability of the banking sector remained stable, as indicated by a 4.57% Net Interest Margin (NIM) and 2.52% Return on Assets (ROA). Meanwhile, credit risk remained manageable, with gross and net NPLs at 2.25% and 0.90%, respectively, below the 5% threshold.

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