Will Rupiah Depreciation Trigger Bank Rush?

Indonesia's Financial Services Authority (OJK) has asserted that the nation faces no risk of a bank run, even as the rupiah experiences a significant slump. Dian Ediana Rae, Executive Head of Banking Supervision at OJK, explained that such mass withdrawals are typically triggered by a lack of public trust 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 stated on Friday. She emphasized that bank management must actively maintain public trust through strong performance, adherence to cautionary principles, and robust risk management across all business lines.

“

We believe that there is currently no potential for a bank rush because the political, security, and economic situation in Indonesia remain conducive.

The OJK acknowledges that the rupiah's depreciation will inevitably affect imported goods prices, diminish public purchasing power, and strain the fiscal situation through government subsidies. However, Dian pointed out that the weaker rupiah could also boost exporters' competitiveness and enhance Indonesia's appeal to foreign tourists. The authority highlighted the banking sector's resilience, with a capital adequacy ratio (CAR) of 23.97 percent as of April 2026 and a gross non-performing loan (NPL) ratio of 2.17 percent.

Friderica Widyasari Dewi, Chair of the OJK Board of Commissioners, affirmed that the OJK will remain vigilant about potential risks transmitted from the rupiah's exchange rate to financial institutions. This includes monitoring foreign exchange obligations of corporations and sectors heavily reliant on imports. The OJK plans to strengthen its oversight of the banking sector's foreign exchange activities, including daily monitoring of net open positions, ensuring sufficient foreign exchange liquidity, and enforcing regulatory compliance. Supervisory dialogues will also be held with banks exhibiting concentrated positions to ensure effective market and liquidity risk management.

“

As well as supervisory dialogue with banks showing accumulation of certain positions, to ensure adequate market and liquidity risk management.