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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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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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Indonesia has once again been forced to confront an uncomfortable question: What happens to the principle of equality before the law once the courtroom doors close?
The question has resurfaced with renewed urgency following a Sept. 23 inspection by the Indonesian Ombudsman at Cibinong Penitentiary in West Java, which uncovered what appeared to be a cluster of well-appointed private residences built directly inside the prison complex. Footage of the unannounced visit quickly went viral. The quarters were furnished with amenities far more typical of serviced apartments than correctional cells, featuring air conditioners, flat-screen televisions, refrigerators, plush sofas and formal dining tables. At one point, an individual was captured hurriedly shutting a door as investigators approached, evidently attempting to evade scrutiny.
According to the Ombudsman, the inspection team identified more than 10 house-like structures on the grounds, alongside luxury vehicles, a fully equipped gym and a golf simulator under construction. One occupant identified himself as an inmate, though correctional officers quickly intervened to block further questioning.
The revelations provoked swift public outcry, fueling demands to uncover how such accommodation could exist inside a state penitentiary and who authorized their use. To its credit, the government acted rapidly. On Sept. 25 and 26, the Immigration and Corrections Ministry questioned 52 inmates and more than 50 facility staff members. On Sept. 26, the ministry suspended Cibinong warden Wisnu Hani Putranto alongside four senior administrative officers pending a full inquiry. Yet subsequent disclosures revealed problems that run far deeper than unauthorized comforts.
During a Sept. 28 hearing before House of Representatives Commission XIII, Director General of Corrections Mashudi conceded that the Cibinong compound housed 16 residential units, 13 of which were never registered as state assets. Mashudi maintained that the buildings were intended as official staff residences and assimilation facilities rather than illicit cells. However, he also admitted that two inmates, Ahmad Albani and Hasan Tjhie, were present inside the facilities during the inspection. Both men were convicted in the high-profile PT Timah graft case, each handed 10-year sentences by the Jakarta High Court in 2025.
The Ombudsman laid out even more troubling details during a separate hearing before House Commission II the following day. Investigators revealed that corruption convict Jimmy Masrin, the former president commissioner of PT Petro Energy sentenced in March 2026 in the Indonesia Eximbank graft case, was suspected of occupying one of the luxury units. Furthermore, the team discovered CCTV equipment throughout the residential enclave, directly contradicting the warden’s earlier assertion that the area lacked surveillance, though investigators could not immediately confirm whether the cameras were operational.
Compounding the issue of preferential housing, the Ombudsman cited reports from inmates’ families alleging that prisoners were routinely subjected to illegal levies of Rp 150,000 (US$8.40) per week simply to secure basic treatment. The scandal has therefore moved well past the initial shock of opulent interiors. The pressing issues now center on administrative complicity: who authorized access, how these shadow assets operated outside state registers and to what extent wealth and connections continue to purchase an entirely different reality behind bars.
Cibinong is hardly an anomaly in Indonesia’s correctional history. In January 2010, the Judicial Mafia Eradication Task Force discovered corruption convict Artalyta Suryani, better known as Ayin, occupying an exclusive suite at East Jakarta’s Pondok Bambu Women’s Penitentiary complete with an air conditioner, television, refrigerator and private bathroom. Seven years later, the National Narcotics Agency seized unauthorized communication rigs and electronics from the cell of drug lord Harianto Chandra at Cipinang Penitentiary in East Jakarta.
By 2018, the Corruption Eradication Commission uncovered an extensive luxury-cell racket orchestrated by the warden at Sukamiskin Penitentiary in Bandung, West Java, catering to high-profile figures such as Fahmi Darmawansyah, Setya Novanto and Muhammad Nazaruddin.
Then came the defining image of correctional impunity: Gayus Tambunan. In 2010, the former tax official was photographed wearing a wig in the stands at an international tennis tournament in Bali while nominally in detention. His case demonstrated that behind Indonesian prison walls, privilege can secure not just creature comforts, but the freedom to bypass detention altogether.
As early as 2011, Indonesia Corruption Watch mapped out five systemic vectors of prison graft: preferential amenities, unauthorized leave, remission tampering, extortion of inmates' families and the use of substitute inmates to serve sentences on behalf of wealthy convicts. What the Ombudsman exposed in Cibinong mirrors those decade-old findings almost point for point.
The foundational question is no longer what is happening, but why the system remains incapable of preventing it, even after President Prabowo Subianto formed a ministry dedicated to deal with the issue in 2024. The law may appear egalitarian in the courtroom, but if money and influence continue to command VIP treatment behind prison walls, the constitutional promise of equality before the law remains elusive.
