Latest stress tests suggest that the financial ratios of the Indonesian banking sector are strong. The sector that is expected to be hit hardest by higher interest rates is Indonesia's consumption sector, particularly the automotive industry.

Financial Ratios Indonesia's Banking Sector:

      June 2012
    June 2013
CAR
      17.49%       18.08%
ROA
       3.16%        3.02%
BOPO
      74.68%       74.66%
NIM
       5.38%        5.43%
LDR       82.57%       86.80%
NPL gross        2.18%        1.88%

Source: Bank Indonesia

Discuss