PORTALJABAR, BANDUNG CITY - The Financial Services Authority (OJK) of West Java Province noted that the performance of the financial services sector (SJK) in West Java until the first quarter of 2026 continued to show good resilience amidst global and national economic dynamics.

The banking sector in West Java showed positive year-on-year growth, reflected in several indicators, including Total Assets, Third Party Funds (TPF), and Credit, with growth rates of 5.93 percent, 9.17 percent, and 1.39 percent, respectively, as of March 2026.

The Head of the Financial Services Authority (OJK) for West Java Province, Darwisman, stated that the financial services sector in West Java remains stable and growing positively, despite significant global and national economic pressures.

"This condition shows that public trust in banking remains strong," said Darwisman, Wednesday (June 3, 2026).

The level of credit risk reflected by the Non-Performing Loan (NPL) ratio is relatively maintained within the threshold limit at 3.44 percent.

"The intermediation function, reflected in the Loan to Deposit Ratio (LDR) of 135.27 percent, indicates that the portion of credit distributed to the public is greater than the amount of Third Party Funds collected," he explained.

In March 2026, credit disbursement by project location in West Java reached Rp1,047 trillion, growing 1.39 percent year-on-year. West Java's credit distribution contribution (market share) reached 11.85 percent of total national credit, making it the province with the second-largest credit market share after Jakarta. The gross non-performing loan (NPL) ratio of banks in West Java was 3.44 percent.

Based on the economic sector, the largest credit distribution (based on non-bank project locations) and also has credit growth with relatively low risk include Households amounting to IDR 438.16 trillion (growing 4.82%) YoY, with a gross NPL of 3.18%) and the Manufacturing Industry amounting to IDR 170.72 trillion (growing 6.50% YoY with a gross NPL of 2.62%), Real Estate amounting to IDR 38.31 trillion (growing 12.79% YoY with a gross NPL of 0.75%), Other Non-Business Fields amounting to IDR 43.24 trillion (growing 5.42% with a gross NPL of 1.64%), and Transportation and Warehousing growing by IDR 30.54 trillion (growing 0.62% YoY with a gross NPL of 0.62%).

"The slowdown in credit distribution was caused by a decline in credit in several sectors, namely Wholesale and Retail Trade (Rp4.30 trillion), Construction (Rp2.09 trillion), and Agriculture, Forestry, and Fisheries (Rp3.67 trillion) due to an increase in credit risk in these leading sectors," Darwisman explained.

According to him, the West Java OJK is striving to continue encouraging banks to channel credit to productive sectors with measurable risks, so that regional economic growth can continue sustainably.

(Rep no/bhf)