Indonesian banks face tighter liquidity after strong profits

Robust loan growth expected to moderate as individual savings slow Bank Mandiri is one of Indonesia's state-owned banks enjoying strong loan and profit growth thanks to government liquidity injections. But as the state funds are due to mature in October, the banking sector overall is bracing for tighter liquidity. (Photo by Ken Kobayashi) JAKARTA — Indonesian banks, ranging from the biggest state-owned lenders to their small digital rivals, have posted robust loan and profit growth in the first half of 2026. The industry, however, is facing tighter liquidity and rising interest margin pressure as macroeconomic challenges persist.

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