Moody’s Investors Service has changed its outlook for the Indonesian banking system to stable from positive following the rating upgrade of the sovereign and many rated banks during April-June 2018. The stable outlook reflects Moody’s assessment that over the next 12-18 months, banks in Indonesia will show stabilizing asset quality in a robust macroeconomic environment.
Strong economic growth will support the operating environment for banks over the next 12-18 months. In particular, macroeconomic policies will lead to real GDP growing 5.2% annually in 2018-19, after 5.1% expansion in 2017. And, loan growth will accelerate to 10%-12% annually during this outlook period from 8.2% in 2017.
Moody’s rates nine banks in Indonesia namely PT Bank Rakyat Indonesia (BRI), PT Bank Mandiri, PT Central Bank Asia (BCA), PT Bank Negara Indonesia (BNI), PT Bank Tabungan Negara (BTN), PT Bank CIMB Niaga, PT Pan Indonesia Bank, PT Bank Danamon Indonesia, PT Bank Permata. These banks accounted for 66% of total system assets at the end of March 2018.