Indonesia
Banking sector profile — Asia-Pacific
Data as of October 2026 • TGB Intelligence Unit
Policy rate as of 7 October 2026: 5.75% (source: Bank Indonesia)
Banking sector at a glance
Structure and performance
Indonesia's banking system is shallow relative to the economy but highly profitable. Deposit takers held IDR 14,050tn of assets in March 2026, about 57% of GDP, and 105 commercial banks reported deposit data to the deposit insurer in June 2026. The state-controlled Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia, together with the privately owned Bank Central Asia, dominate: their consolidated assets equal roughly 59% of commercial-bank assets. Under Law 16 of 2025, most state shareholdings in state-owned enterprises, including the state banks, are held through the Danantara investment agency, with the state retaining a Series A Dwiwarna share.
Banks are funded predominantly by third-party deposits, which grew 13.8% in 2025, and the industry loan-to-deposit ratio stood at 85% in December 2025 after government liquidity placements in September 2025. Deposits are highly concentrated: accounts above IDR 5bn made up 57.95% of commercial-bank deposits by value in June 2026, although 98.93% of accounts held IDR 100m or less. Credit growth accelerated from 9.6% at end-2025 to 13.65% year on year in August 2026, led by investment loans (25.11%) and working-capital loans (11.45%), while consumer lending grew only 5.07%.
Capital and profitability are strong by regional standards. The banking system's capital adequacy ratio was 23.74% in May 2026, and gross and net NPL ratios were 2.17% and 0.84%. Industry return on assets was 2.5% in 2025, with an operating-expense-to-operating-income (BOPO) ratio of 73.1%, according to OJK data cited by BNI. Liquid assets covered 23.08% of third-party funds in June 2026. Among the largest banks, BNI's consolidated assets rose 20.5% in 2025 to IDR 1,362tn, lifting its share of industry assets to 10.2%.
The principal risks are external. The rupiah weakened from IDR 16,782 per dollar at end-2025 to 18,078 at end-July 2026, prompting Bank Indonesia to raise the BI-Rate by a cumulative 100bp between May and June 2026, including a 25bp increase at a weekly Board of Governors meeting on 9 June. Higher funding costs, the rapid pick-up in investment lending and the concentration of large deposits are the main pressure points for liquidity and asset quality. Bank Indonesia has since held the rate at 5.75% to stabilise the rupiah; inflation was 3.19% in August 2026, within its 2.5±1% target.
Structural trends
The shifts shaping banking in Indonesia.
Credit acceleration: bank lending growth rose from 9.6% at end-2025 to 13.65% year on year in August 2026, driven by investment credit growing 25.11%.
State ownership restructuring: under Law 16 of 2025, state shareholdings in state-owned banks such as BNI (60% state-owned) are held largely through the Danantara sovereign investment agency.
Rate-cycle reversal: after 125bp of cuts in 2025, Bank Indonesia raised the BI-Rate by 100bp between May and June 2026, to 5.75%, to stabilise the rupiah.
Inclusion gap: OJK's 2026 survey put the financial inclusion index at 93.61%, but the World Bank's Global Findex 2025 found 56% of adults held an account.
Leading institutions
Largest banks in Indonesia by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | Bank Mandiri | US$169.3bn | State-owned |
| 2 | Bank Rakyat Indonesia | US$127.7bn | State-owned |
| 3 | Bank Central Asia | US$94.9bn | Commercial |
| 4 | Bank Negara Indonesia | US$81.5bn | State-owned |
| 5 | Bank Tabungan Negara | US$31.6bn | State-owned |
| 6 | Bank CIMB NiagaSubsidiary of CIMB Group | US$22.3bn | Commercial |
| 7 | Bank OCBC NISPSubsidiary of OCBC | US$18.4bn | Commercial |
| 8 | Bank Danamon IndonesiaSubsidiary of MUFG | US$16.5bn | Commercial |
Largest banks in Indonesia by total assets, FY2025 audited accounts. Domestic groups as in the TGB Bank Rankings; subsidiaries of foreign groups shown with their own accounts and marked. Not a ranking table. Converted at official central-bank rates for each fiscal year-end.
Supervision and capital rules
Otoritas Jasa Keuangan (OJK) licenses and supervises banks; Bank Indonesia conducts monetary and macroprudential policy and oversees payment systems, using instruments such as the macroprudential liquidity incentive (KLM), raised by 50bp to 5.5% in 2025 to support lending. Capital rules follow Basel III: each bank's minimum capital adequacy ratio is set according to its risk profile, with a 2.5% capital conservation buffer, a countercyclical buffer currently at 0% and a surcharge for systemic banks (1.5% for BNI). Lembaga Penjamin Simpanan (LPS) insures deposits up to IDR 2bn per depositor per bank, covering 99.94% of commercial-bank accounts in full, and handles bank resolution. Law 16 of 2025 reorganised state ownership of state-owned banks.
What changed in 2026
- May 2026: Bank Indonesia raised the BI-Rate by 50bp on 20 May to counter rupiah weakness, beginning a tightening cycle after 125bp of cuts in 2025.
- June 2026: Bank Indonesia added 25bp at a weekly Board of Governors meeting on 9 June and a further 25bp on 18 June, taking the BI-Rate to 5.75%.
- August 2026: OJK's 2026 national survey reported financial inclusion of 93.61% and financial literacy of 69.57%, both above the 2029 national targets.
- September 2026: Bank Indonesia, under Governor Destry Damayanti, held the BI-Rate at 5.75% for a third consecutive meeting as bank credit growth reached 13.65%.
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