Indonesia: Financial System Stability Assessment-Press Release and Statement by the Executive Director for Indonesia

· International Monetary Fund
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Since the 2010 FSAP, Indonesia’s macroeconomic performance has been robust and the financial system has been stable. Recently, the financial system has weathered well a simultaneous economic and credit deceleration. Corporate vulnerabilities have remained broadly in check, though debt-at-risk is elevated in some sectors and external refinancing risk persists. The banking system remains sound even though, as economic growth has slowed, banks’ high profitability has fallen somewhat and problem loans have risen. Banks’ capitalization remains strong and well above regulatory minima.

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