Foreign banks can establish a new bank, open a local branch or buy into existing local banks with up to 99% foreign ownership limit.
Financial Services Sector in Indonesia
Indonesia is an open market for the financial services sector. Huge potential growth in banking
(conventional and Islamic), insurance (particularly life segment) and capital market.
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.
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 long-awaited law to establish a financial services regulator
(OJK) which will have supervisory and regulatory oversight of banks, NBFIs and financial
markets. The OJK is expected to start operating in 2013.
Apart from Bank Indonesia, there are several other regulatory bodies which have influence over
the banking system. The Indonesian Capital Market and Financial Institution Agency
(BAPEPAM-LK) and Indonesia Stock Exchange also have a significant regulatory role,
particularly in relation to the settlement of marketable securities and related accounts.
Foreign banks can establish a new bank, open a local branch or buy into existing local banks
with up to 99% foreign ownership limit.
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 fund
in expanding the product base that Sharia banks are able to offer to customers. Limited
knowledge of more sophisticated banking products presents collaboration opportunities.
Latest export opportunities – Financial & Professional Services
Latest export opportunities - 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.
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
2nd Bank Indonesia International Seminar on Islamic Finance
(Bandung, West Java, 7-8 May, 2012)
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 – Financial & professional Services
Latest events – Indonesia
More about OMIS and other UKTI services for exporters