Indonesian Banks Enhance Efficiency Amid Rising Operational Costs

Rising Operational Expenses Challenge Profitability

Indonesian banks are facing the challenge of maintaining profitability as operational costs continue to rise. The operational expense-to-revenue ratio (BOPO) has increased for several major banks in 2025. For instance, Bank Tabungan Negara (BTN) reported a BOPO of 90.23% as of Q3 2025, up from 89.43% in the same period last year. Similarly, CIMB Niaga's BOPO stood at 73.23%, slightly higher than the 72.85% recorded in the same period the previous year.

Strategic Measures to Maintain Profitability

To counter the rising operational costs, Indonesian banks are focusing on efficiency measures and cost management strategies. By streamlining operations and improving efficiency, banks aim to mitigate the impact of increased expenses on their profitability. This strategic approach is crucial for maintaining financial stability and competitiveness in the banking sector.