Amid global uncertainty, Bali’s economic pulse continues to beat stronger, at least according to its financial sector indicators. The island’s banking industry is showing signs of growing optimism, reflected by a surge in bank credit disbursement and improved financial health in the first quarter of 2025.
The Financial Services Authority (OJK) revealed that total credit distribution in Bali reached IDR 113.82 trillion, marking a 7.25% year-on-year (yoy) growth. That figure surpasses the 6.52% growth rate recorded during the same period last year.
Kristrianti Puji Rahayu, Head of OJK Bali, pointed out that investment loans remain the main driver. “This year’s growth is still supported by an increase in investment credit, which rose by IDR 5.02 trillion or 16.24% yoy,” she said. In February 2025, the growth rate stood at 16.06% yoy.
Such rapid expansion in investment credit, according to Puji, reflects stronger public confidence in Bali’s economic outlook. The surge in lending is also supported by loans to Micro, Small, and Medium Enterprises (MSMEs), which account for 51.98% of the province’s total credit, growing by 4.94% yoy.
By sector, lending remains concentrated in non-business or consumer-related loans at 33.88%, followed by the wholesale and retail trade sector at 28.42%. The increase was significantly boosted by the non-business sector, which gained IDR 2.26 trillion or 6.22% yoy, and the accommodation and food and beverage sector, which saw a rise of IDR 1.98 trillion or 17.30% yoy.
“The financial services industry in Bali remains stable as of March 2025, supported by strong capital, sufficient liquidity, and well-managed risk profiles,” Puji explained in a press statement released on Monday, May 19, 2025.
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The quality of Bali’s banking loans also appears to be under control. The gross Non-Performing Loan (NPL) ratio was recorded at 3.10%, while the net NPL stood at 2.17%—a slight improvement from February 2025’s 2.18%, and still well below the regulatory threshold.
Credit restructuring completion and continued credit expansion contributed to a significant improvement in the Loan at Risk (LaR) ratio. As of March 2025, LaR dropped to 11.62%, down from 17.73% in the same period last year.
Puji emphasized that OJK remains committed to supporting banks through necessary policy measures. “OJK will continue to assist the banking sector so that it grows sustainably while maintaining prudent risk management,” she said.
Deposits from third parties (DPK) also show a positive trajectory. The total stood at IDR 192.72 trillion, growing by 10.47% yoy—more than double the national DPK growth of 4.76% yoy. Most of this increase came from a jump in savings, which rose by IDR 11.97 trillion as of March 2025.
Banking intermediation also remains solid. The Loan to Deposit Ratio (LDR) was recorded at 59.06%, indicating a healthy flow of funds into the real sector.
As for Rural Banks (BPR), key capital metrics remain strong. The Cash Ratio (CR) stood at 14.40%, while the Capital Adequacy Ratio (CAR) was at a solid 35.27%—well above the minimum thresholds.
“The high capital levels in banks are expected to absorb potential risks. OJK will keep pushing for robust intermediation while maintaining a balance between credit growth and liquidity,” Puji concluded.
