The central bank (Bank Indonesia/BI) reported that financial system stability has been maintained amidst a stable intermediation function and contained credit risk. The Capital Adequacy Ratio (CAR) of the banking industry remained high at 23.4% in February 2019, accompanied by a low level of Non-Performing Loans (NPL), namely 2.6% (gross) or 1.2% (net).

In terms of the intermediation function, the banking industry reported stable growth of outstanding loans in the reporting period at 12.1% (yoy), up slightly from 12.0% (yoy) in February 2019. In addition, deposit growth reported by the banking industry accelerated to 6.6% (yoy) in February 2019 from 6.4% (yoy) in January 2019.

BI projects high growth of loans disbursed by the banking industry towards the upper end of the 10-12% (yoy) range, supported by deposit growth forecast in the 8-10% (yoy) range.