Indonesian Banking Liquidity Remains Safe Through the First Half of 2025

Liquidity in Indonesian banking remained healthy until the end of the first half of 2025.

This is evident from the loan-to-deposit ratio (LDR) of banks, which remained within the safe limits set by Bank Indonesia (BI) regulations.

LDR is the ratio of loans or financing disbursed by a bank, compared to the total deposits or third-party funds managed by the bank.

A high LDR indicates low liquidity, where the bank's capacity to disburse new loans is decreasing.

Conversely, a low LDR indicates high liquidity, where the bank still holds a large amount of cash to be disbursed.

However, an excessively low LDR is also unhealthy, as it indicates that a significant amount of funds are "idle" or underutilized.

Based on BI Regulation No. 15/15/PBI/2013, the lower limit of the LDR ratio is 78% and the upper limit is 92%.

Referring to data from the Financial Services Authority (OJK), the national LDR ratio for general banks remained within these limits, fluctuating between 85-88% during June 2024-June 2025, as shown in the graph.

This was also confirmed by Dian Ediana Rae, Executive Head of Banking Supervision at the OJK.

"From this condition, we see that there's nothing to worry about; the LDR is still around 80%, which can be considered normal," said Dian, as reported by Kontan.co.id on Friday (12/9/2025).