Sector

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.

Latest News

July 7, 2026

The Chromebook procurement case has become one of Indonesia's highest-profile corruption prosecutions, sparking intense debate over whether it represents a straightforward anti-corruption effort or something far more consequential.

Nine months after the legal process began, and with the court finally delivering its verdict, the case has evolved far beyond a routine procurement dispute. Instead, it has become a litmus test for the Indonesian justice system to distinguish between policy misjudgment, abuse of authority and criminal corruption.

On June 30, the Jakarta Corruption Court sentenced former education minister Nadiem Anwar Makarim to 10 years in prison, imposed a Rp 1 billion (US$55,700) fine and ordered him to pay Rp 809 billion in restitution. Nadiem was given one month to pay the restitution, failing which he will serve an additional five years in prison.

The bench found Nadiem guilty of abusing his authority in the procurement of more than 1 million Chromebook laptops between 2020 and 2022, when Indonesia and the world were hit hard by COVID-19 pandemic that forced schools to avoid in-class learning. According to the ruling, the then-education ministry altered procurement specifications in a way that effectively favored Chromebooks, resulting in Rp 1.57 trillion in state losses.

The court also concluded that the program failed to achieve its intended purpose because many schools, particularly those in areas with poor internet connectivity, were unable to use the devices effectively.

The verdict marked the culmination of a legal process that began on Sept. 4, 2025, when the Attorney General's Office (AGO) named Nadiem a graft suspect. Prosecutors maintained that internal technical assessments had found Windows-based laptops to be more suitable for Indonesian schools, yet those recommendations were allegedly set aside in favor of ChromeOS. They had initially sought 18 years' imprisonment, a Rp 1 billion fine and Rp 5.6 trillion in restitution.

Yet, the sentence itself is arguably not the most significant outcome of the case. More striking is how public opinion evolved throughout the proceedings. Unlike most high-profile corruption trials, where public frustration is typically directed at judges for handing down lenient sentences, the Nadiem case generated an altogether different response. Even before the verdict, much of the public debate had shifted from how severely he should be punished to whether the prosecution had convincingly demonstrated that a controversial policy decision amounted to criminal corruption.

Unlike conventional corruption cases involving bribery or personal enrichment, the Chromebook case revolved around a policy decision whose criminality depended on proving abuse of authority and corrupt intent. As the trial progressed, public attention increasingly focused not on whether the procurement had failed logistically, but on whether prosecutors had successfully demonstrated that the legal threshold for corruption had been met.

The first turning point came when Nadiem challenged his suspect designation through a pretrial motion. Although the court ultimately rejected the application, the proceedings attracted unusual attention after 12 prominent legal figures submitted amicus curiae briefs. Among them were former attorney general Marzuki Darusman and former Corruption Eradication Commission (KPK) commissioner Amien Sunaryadi.

The second turning point unfolded during the trial itself. As prosecutors and defense lawyers presented competing expert testimony and documentary evidence, public attention increasingly shifted to the strength of the prosecution's case. The defense consistently argued that the Chromebook program followed prevailing procurement procedures and generated cost efficiencies. While the court ultimately rejected those arguments, the proceedings exposed genuine disagreement over whether the evidence established criminal intent or merely demonstrated shortcomings in policy implementation.

The final turning point came with the verdict itself. The decision was not unanimous. Judge Andi Saputra issued a dissenting opinion, stating that he found no convincing evidence that Nadiem deliberately sought to benefit Google or acted with corrupt intent. In his view, the prosecution had failed to establish the essential criminal elements required under Indonesia's anti-corruption laws and Nadiem should therefore have been acquitted.

Questions over the proceedings were further fueled by what many viewed as an unusual courtroom process. After reading the verdict, the panel of judges immediately adjourned the hearing without giving the defense the customary opportunity to formally state their position on the ruling.

Leaving the courtroom in tears, Nadiem questioned whether justice had truly been served, describing parts of the verdict as conclusions that "didn't make any sense." Referring to the fine and restitution, he argued that it would be impossible to pay the amount within one month, despite the judges being fully aware of his publicly declared assets. Nadiem later confirmed that he and his legal team would immediately challenge the verdict.

Regardless of how the appeal unfolds, the Chromebook saga has become more than a corruption prosecution; it has morphed into a decisive test of legal certainty, judicial process and the threshold for holding public officials criminally liable for policy decisions.

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