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
The Presidential Palace has partnered with the Indonesia New Media Forum (INMF) in a move it says could significantly expand its social media reach, potentially adding up to 100 million views per day.
Muhammad Qodari, head of the Government Communications Agency (Bakom), announced the initiative following a May 7 meeting with the group. He described INMF members as “homeless media,” referring to small, social media–based outlets that operate outside conventional institutional structures.
Typically run by one to five people, these outlets rely on platforms such as Instagram, TikTok and YouTube rather than traditional websites to distribute content. Despite their limited organizational scale, many have built large followings, underscoring their growing presence in Indonesia’s digital media landscape.
The partnership appears to align with Qodari’s stated approach to government communication. Upon his appointment in late April, he said the administration would promote its programs “intensively, proactively and aggressively.”
Formed in July 2025, INMF provides a collaborative platform for social media-based publishers adapting to shifts in how audiences consume news and information. The latest announcement signals official recognition of the group’s role in that evolving environment.
The initiative also comes as President Prabowo Subianto adjusts his communications strategy. In April, he reinstated political consultant Hasan Nasbi as special adviser on communication. Hasan previously worked on the presidential campaigns of Joko “Jokowi” Widodo in 2014 and 2019 and Prabowo in 2024.
Hasan had resigned as head of the presidential communication office in April 2025, reportedly due to internal differences. His return suggests continuity in shaping the administration’s public messaging.
He has said the INMF partnership does not constitute a formal working relationship between the government and its members. Rather, he described it as an effort to adapt official communication to current media consumption patterns, particularly on platforms that operate beyond traditional corporate frameworks.
More than a year and a half after Prabowo’s inauguration in October 2024, survey data show his approval rating remains above 70 percent, indicating sustained public support.
The President however continues to face criticisms, mostly online, although that digital space is also shrinking with reports of harassments against critics, mostly scholars and activists and a handful of critical media.
At the same time, the development highlights broader changes in the media ecosystem. Traditional print and broadcast outlets now share audience attention with a wide range of digital actors, including independent content creators, citizen journalists and online influencers.
Following Qodari’s remarks, several media organizations clarified their positions regarding INMF.
Narasi, founded by journalist Najwa Shihab, said it is not part of the forum and emphasized that it is registered with the Press Council and adheres to established journalistic standards.
Indozone, which targets millennial and Gen Z audiences, also stated that it remains independent and has no formal ties to the government. It added that its editorial staff have undergone professional competency certification. Qodari said the partnership would help expand the government’s public outreach. However, details regarding specific arrangements with INMF members were not elaborated, other than that participating outlets would have access to government information similar to conventional media and could receive support to improve reporting quality.
Many social media-based outlets do not have formal corporate structures, meaning they do not meet Press Council registration requirements and are not covered by protections under the 1999 Press Law. Nevertheless, many maintain verified social media accounts that signal authenticity to their audiences.
