Indonesia is an open market for the financial services sector. There is a huge potential growth in banking (conventional and Islamic), insurance (particularly life segment) and the capital markets.
Financial Services sector in Indonesia
Indonesia is an open market for the financial services sector. There is a huge potential growth in
banking (conventional and Islamic), insurance (particularly life segment) and the capital markets.
The growth of Indonesia’s economy results in a higher demand for professional services e.g.
legal, accountancy and management consultancy, etc.
Indonesia’s economic growth continues to be strong at 6.5% in 2011 and predicted to reach
6.1%-6.3% in 2012, and is South East Asia’s largest economy.
Indonesia’s credit rating has reached investment grade. Long-term foreign currency rating from
Fitch Ratings’ is BBB-, while Moody’s is Baa3.
There are 122 banks with more than 13,000 branches in Indonesia. These consist of state-owned
banks, local private banks (foreign exchange and non-foreign exchange licensed banks), foreign
banks and the regional development banks.
Bank Indonesia (Central Bank) has the authority to issue policy rules and regulations. In October
2011, Indonesia’s Parliament passed a long-awaited law to establish a financial services
regulator (OJK) with the authority to regulate and supervise the financial services industries, and
thus assuming the Ministry of Finance and Capital Market and Financial Institutions Supervisory
Agency’s function in regulating and supervising the capital market, insurance, pension funds,
leasing companies and other financial services institutions, as well as Bank Indonesia’s function
in regulating and supervising the banking sector (as of 31 December, 2013).
Bank Indonesia has recently introduced new rules on limits to bank ownership in Indonesia, to be
effective on 13 July 2012.
Foreign providers of professional services (legal, accountancy, etc.) wishing to practice in
Indonesia are subject to a different set of requirements.
ξ Continuous growth of middle class in recent years offers huge opportunities for priority
ξ Banks are increasingly focusing on providing better services and product innovation to
their customers. Consequently, many banks continue to invest in IT-based banking
systems and software.
ξ Considering the size of the Muslim population in Indonesia and the growth of the Islamic
banking sector over the past 5 years, strategic investment and partnerships are to be found
in expanding the product base that Sharia banks are able to offer to customers. Limited
knowledge of more sophisticated banking products presents collaboration opportunities.
ξ In spite of the current regulations, there is an increasing interest on the part of foreign
providers in supplying professional services in Indonesia to support the activities of
international and Indonesian clients.
Latest export opportunities in the Financial & Professional Services sector
Latest export opportunities in Indonesia
Getting into the market
There are various methods of entry into:
Indonesia’s Banking Sector:
ξ Purchase of shares in banking entities;
ξ Acquiring an existing bank;
ξ Opening up a branch of a foreign bank;
ξ Establishing a new bank;
ξ Investing in Islamic banks.
Indonesia’s Professional Services Sector:
ξ Establish presence in association with Indonesian firms;
ξ Open a representative office;
ξ Enter an MOU with relevant institutions.
More about doing business in Indonesia
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
ξ Lian Jap, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5265, Fax : +62 21 2356
5352 or email : firstname.lastname@example.org
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events in the Financial & Professional Services sector
Latest events In Indonesia
None at present.
More about OMIS and other UKTI services for exporters