June 5, 2026 | 10:55 pm
TEMPO.CO, Jakarta - The Financial Services Authority (OJK) said the direct impact of weakening rupiah on the financial services sector, especially banking, remains under control. OJK Commissioner Board Chair Friderica Widyasari Dewi said this is reflected in the banking sector's capital adequacy ratio (CAR) in April at 23.97 percent."So, this still provides sufficient buffers to absorb various potential risks," said Friderica in a press conference at the Monthly Commissioner Board Meeting on Friday, June 5, 2026. Additionally, she noted that the banking sector's net open position (NOP) remains well below the maximum threshold of 20 percent of a bank's capital.However, Friderica said that the OJK will remain vigilant about the various channels through which risks can be transmitted from the rupiah exchange rate to financial institutions. One of them is being cautious of the potential increase in foreign exchange obligations on corporations.The OJK will also monitor sectors with high import exposure. This condition has the potential to affect debtors' ability to pay.To mitigate these risks, the OJK will strengthen its monitoring of the banking sector's foreign exchange activities. This will include daily monitoring of net open positions, ensuring adequate foreign exchange liquidity, and enforcing compliance with related foreign exchange regulations. "As well as supervisory dialogue with banks showing accumulation of certain positions, to ensure adequate market and liquidity risk management," said Friderica.Read: 5 Measures to Stabilize the Rupiah, According to AnalystClick here to get the latest news updates from Tempo on Google News
