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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.
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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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The death of Bambang Setiawan, a 60-year-old mirror seller from Pejompongan in Central Jakarta, should have been a straightforward homicide case. He left his house at 10 p.m. to switch off the lights in his shop 500 meters away, during unrest following the Aug. 27 demonstrations near the Senayan Legislative Complex in Central Jakarta. He was found unconscious, removed by police and pronounced dead at Mintohardjo Hospital. Ten days later, the case has become a mirror for everything wrong with how Indonesia polices protest.
The Jakarta Police investigation is curiously hollow. Police say they are analyzing amateur social media videos, have questioned 14 witnesses, and released facial sketches of two men aged 30–40. Yet for a death in a dense urban area, under heavy police deployment, on a night when hundreds were arrested, there is still no named perpetrator, no timeline, no forensic anchor.
The family, traumatized by the body's condition, refused an autopsy. Police accepted the refusal, understandable on humanitarian grounds, but it left the state without the one piece of evidence that could establish cause of death.
The investigation now rests entirely on chaotic witness testimony and videos police themselves admit are partly AI-manipulated. As of Sept. 2, 49 people remain suspects, but charged with damaging public property and assaulting other victims, not with Bambang's death. Many arrested, none accountable for the death that matters.
Into that vacuum enters the Jakarta chapter of the United Indonesian People’s Movement (GRIB). Secretary-general Zulfikar confirmed GRIB members were present that night as civilian security volunteers assisting police (Pam Swakarsa) insisting: "It was not GRIB that beat him. It was the protesters."
That defense creates a bigger problem. If GRIB was there as Pam Swakarsa, who requested it? Police deny any formal request, no operational order, no written request, no coordination record. But GRIB's own narrative depends on being invited. Either GRIB self-mobilized into a security operation illegally, or it was invited by someone who now denies it. Either way, the state has outsourced its monopoly on violence.
Using militias to help police manage protests is an open secret in Jakarta.
From the late New Order onward, militias like Pemuda Pancasila, the FBR and now GRIB have served as counter-demonstrators and intimidators, uniformed police beating students looks bad on camera; civilian thugs beating civilians looks like a "clash between community groups."
Advocacy monitors have documented mobs in white headbands arriving by truck on Aug. 27 carrying wooden weapons, with concrete bricks "prepared beforehand." This was logistics, not spontaneous anger.
Pam Swakarsa originated in 1998 as military-armed civilian militias, never having been given a solid legal footing since. Neither the 2002 Police Law nor the 2025 Indonesian Military (TNI) Law authorizes civil organizations to perform crowd control, that remains a police function requiring trained, accountable personnel.
As Amnesty Indonesia's executive director Usman Hamid warned, involving mass organizations risks letting crowds usurp police authority under the guise of "assisting." If GRIB was deployed as Pam Swakarsa without legal basis, every act of violence it committed or allowed implicates the officials who permitted it.
GRIB does not move for free. Mobilizing members, transportation and equipment takes money and command. If police deny making the request, did the TNI, or someone in the political elite? GRIB has expanded rapidly believing itself a "gatekeeper” to President Prabowo Subianto’s regime, an organization that close to power does not need a written order; a nod suffices.
GRIB's founder, Hercules (Rosario de Marçal), credits Prabowo with saving his life during his Kopassus years. GRIB was founded in 2011 with an explicit mission of bringing Prabowo to power, mobilizing 25,000 members for his 2024 inauguration.
Prabowo's 2022 resignation from GRIB's advisory board was legal insulation, not a political divorce. Hercules and GRIB's lawyer affirmed after the unrest they would "continue to guard Prabowo." GRIB is not formally part of the state; it is more useful, a plausibly deniable instrument.
This is why suspicion flourishes. Indonesia has seen this script before: peaceful protests followed by unidentified groups causing chaos, diverting public anger from the original grievance toward "anarchy", and justifying crackdowns.
Bambang's death may not be a bug in that strategy but a feature, except this time the victim was a beloved local resident, not a demonstrator, and the strategy could not hide its fingerprints.
Police arrested 387 people yet cannot name the killers of the one death everyone witnessed. They deny using GRIB, while the group itself admits deployment as Pam Swakarsa. Until the police answer who called up GRIB that night, and under what authority, the investigation will read not as an investigation, but as a cover-up.
