June 6, 2026 | 09:00 am

TEMPO.CO, Jakarta - Amid rupiah slump, Indonesia's Financial Services Authority (OJK) believes there's no risk for a bank rush, or mass withdrawal of funds from the banking sector. Dian Ediana Rae, the Executive Head of Banking Supervision at OJK, said a banking rush is generally caused by public distrust in the banking system."We believe that there is currently no potential for a bank rush because the political, security, and economic situation in Indonesia remain conducive," Dian said on Friday, adding that bank management must strive to maintain public trust by ensuring performance, implementing cautionary principles, and managing risks in every line of business.OJK acknowledges that the rupiah depreciation will impact the prices of imported goods, reduce people's purchasing power, and burden the fiscal situation due to the government subsidies. However, Dian mentioned that the rupiah depreciation could also have a positive impact on exporters and make Indonesia an attractive destination for foreign tourists.Dian claimed that the current banking condition remains solid, as reflected in the banking sector's capital adequacy ratio (CAR) as of April 2026 at 23.97 percent. Furthermore, the banks' gross non-performing loan (NPL) stood at 2.17 percent.The Chair of the OJK Board of Commissioners, Friderica Widyasari Dewi, stated that 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. 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: What Is the Impact of Rupiah Weakening on Banks?Click here to get the latest news updates from Tempo on Google News