Indonesia Needs New Funding Sources for Economic Growth: OJK

Indonesia needs new financing sources to support its national economic growth targets, as current needs cannot be solely met by the banking sector, stated Friderica Widyasari Dewi, Chair of the Financial Services Authority (OJK) Board of Commissioners. She emphasized the necessity of deepening the financial market and developing alternative financing instruments to achieve economic growth goals, projecting a significant funding requirement of around Rp8,600 trillion by 2027.

The OJK has identified deepening the financial market as a primary objective for supporting national development financing. This includes promoting capital market instruments like regional bonds to aid local development. The authority also advocates for increased financing in the financial services sector, strengthening the MSME financing ecosystem, and advancing the green economy through carbon economics and sustainable finance.

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If we look at the economic growth target, for example in 2027, data from Bappenas states that Indonesia needs large financing to support our economic growth, perhaps around Rp8,600 trillion. This cannot only be supported by banking and others, but new financing sources must emerge.

Furthermore, the OJK is focusing on developing secure and ethical digital financial services, reinforcing the Islamic financial services sector, and enhancing financial literacy and inclusion. Widyasari noted that Indonesia's current economic growth is below the potential rate required for the nation to become a developed country, underscoring the need for the financial services sector to play a more strategic role beyond investment, serving as a long-term financing source.

The OJK also highlighted the importance of regional economic development as a pillar of national growth. The Regional Economic Development (PED) program, active in 40 regencies and cities, focuses on agriculture, creative economy, and tourism. Widyasari explained that this program aims to optimize regional economic potential sustainably by expanding markets and increasing economic benefits for communities and businesses. She added that cross-sectoral collaboration is crucial for transforming regional strengths into tangible productive advantages, ultimately boosting investment, productivity, employment, exports, and public welfare.

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Collaboration and cross-sectoral synergy are key to ensuring that superior potential in the regions can be transformed into productive advantages that have a real impact.