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Finance
Indonesia’s financial sector has been flourishing over the past half decade. The COVID-19 pandemic period, while being a time of austerity for most sectors, led to revolutionary innovations in Indonesia’s financial services industry, particularly in fintech. From December 2020 to December 2022, total assets of the fintech sector grew by 48.54 percent from 2020 to 2022. This growing trend continued even after the pandemic lockdowns ended, as total assets in fintech grew by 30.8 percent from December 2022 to December 2023.
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Finance
Indonesia’s financial sector has been flourishing over the past half decade. The COVID-19 pandemic period, while being a time of austerity for most sectors, led to revolutionary innovations in Indonesia’s financial services industry, particularly in fintech. From December 2020 to December 2022, total assets of the fintech sector grew by 48.54 percent from 2020 to 2022. This growing trend continued even after the pandemic lockdowns ended, as total assets in fintech grew by 30.8 percent from December 2022 to December 2023.
With fintech paving the way forward, traditional banking followed suit by revolutionizing its services. From 2022 to 2023, the banking industry’s fund distribution increased by 6.28 percent, source of funds increased by 6.33 percent, and total assets in the industry grew by 6.98 percent, reaching a total of US$8.22 trillion. Moreover, even regional banks have been benefitting from this wave of innovation. For the same period from 2022 to 2023, the regional banking sector saw a 7.67 percent in distributed funds, an 8.08 percent increase in source of funds, and a 7.52 percent increase in total assets, reaching a total of US$137.96 billion.
Innovations in Indonesia’s finance sector extend beyond financial services. On September 2023, the Indonesian monetary authority, Bank Indonesia (BI), introduced three pro-market monetary instruments that function as short-term fixed income securities with high coupon rates. The three instruments, SRBI, SUVBI, and SUVBI, were able to collect Rp 409 trillion (US$25.2 billion), US$2.31 billion, and US$387 million, respectively.
Particularly in the case of the SRBI, this instrument represented an innovative way to attract capital flow from abroad during a period of high credit costs and slow investment. Approximately 20.77 percent, or Rp 85.02 trillion (US$ 5.26 billion), of the total outstanding SRBI were owned by non-Indonesian residents, underscoring the SRBI’s success as a monetary instrument.
Even when compared to other countries in the same region, the Indonesian finance sector stands out for its stability against fluctuations. Throughout 2023, the global cost of credit was high due to hawkish Fed policies made to curb US inflation, resulting in a stagnation of capital flow on a global scale. Entering the second quarter of 2024, the composite index of many Southeast Asian countries such as Singapore and Thailand recorded price decreases compared to the same period last year, reaching -3.96 percent and -13.9 percent on the Straits Times Index (STI) and the Bangkok SET index, respectively. Meanwhile, the Jakarta Stock Exchange Composite Index (JKSE) recorded a price increase of 5.18 percent for the same one-year period.
In summary, the Indonesian financial sector stands out for its stability and consistency, maintaining growth through innovation even during periods of austerity or global uncertainty. This consistency is also reflected in its GDP, which grew by 7.4 percent from 2022 to 2023, contributing roughly 4.16 percent to the national GDP in 2023.
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An Indonesian political standup-comedy show currently streaming on Netflix has become one of the top trending topics on social media these past few weeks, some calling the content inappropriate while others welcoming it as a fresh take on current affairs. And now police are stepping in following formal reports for defamation, incitement and blasphemy.
Titled Mens Rea, a Latin phrase meaning guilty mind, the show released just before the end of the year has become a litmus test about the extent of free speech, including satire, in the country under the new Criminal Code which came into force on New Year Day.
Typically, the controversy, and now the reports filed with police, raised more curiosity and more views, so that it became the number one show on Netflix in Indonesia in the first three weeks of its release.
Pandji Pragiwaksono, one of Indonesia’s leading standup comedians, spared no one in the country’s political elite during the more than two-hour monologue, from the president and vice president, the military and the police, the political parties, Cabinet ministers and politicians who had been prominent in the news, as well as religious organizations.
The Netflix show is a recording of his stage performance at Indonesia Arena in Central Jakarta in August before a full capacity crowd of 10,000 paying audiences. It was a huge commercial success then, and now courtesy of Netflix, millions more people have watched it.
Given the controversy, it was only a matter of time before someone would turn to the law. Some took the bait, although it was not clear which of the big public figures or institutions they represent. Police said they have received separately three reports and two formal complaints to justify their investigation.
One complaint was filed by an individual claiming the content had been inciting and blasphemous.
In submitting the report, the individual attached press releases by groups claiming to represent Nahdlatul Ulama (NU) and Muhammadiyah, two of Indonesia’s largest Muslim social organizations. Both groups immediately distanced themselves from the press releases, respectively by the Youth Force of Nahdlatul Ulama and the Alliance of Muhammadiyah Youth, saying they do not represent the view of the parent organizations.
Pandji picked on NU and Muhammadiyah for being the first religious groups to win lucrative coal mining concessions, despite having zero mining competence and skills, from then-president Joko “Jokowi” Widodo just before the 2024 general elections. Both groups openly supported the candidacy of Prabowo Subianto and Jokowi’s son Gibran Rakabuming in the presidential election. The pair went on to win with a landslide majority.
Another complaint was reportedly filed on behalf of politician Dharma Phongrekun, who ran and lost his bid in the 2024 Jakarta gubernatorial election. Dharma, however, said he was not offended by the jokes targeting him but could not stop if his supporters decided to file the report.
It is now up to the police to decide whether the complaints stand on strong ground against the new Criminal Code. When it comes to government figures or state agencies, the article on defamation said only the individuals or the institutions have the right to file complaints. They cannot be represented by others.
Police will also need to establish whether there is ill intention, or mens rea, in Pandji’s jokes, an essential component for a criminal investigation, to be able to proceed. Police also want to talk to 46-year Pandji, who lives in New York City, the United States.
Netflix has defended the streaming of Mens Rea, emphasizing its commitment in supporting creative freedom but distanced itself from the potential legal fallout. “Regarding the content and its legal implications, he [Pandji] is the most appropriate person to provide and explanation,” Malobika Banerji, Netflix Southeast Asia content director, was quoted as saying by Tempo.
One critic by the name of Tompi, a medical doctor/entertainer with over 1.5 million followers on social media, called out Pandji for making a mockery of Vice President Gibran’s physical appearance. Although he appreciated the political substance of the show, the surgeon said it was not smart for Pandji to mimic Gibran’s sleepy eyes for joke material.
The 38-year-old Gibran dismissed the controversy about him, saying he had grown accustomed to being the target of jokes and that he had seen much worse.
He said he had been borne with those eyes. “That’s okay. You entertain people;” he said.
