Transformation and Growth Quality Key to Financial Industry Resilience

Indonesia's financial industry possesses a robust foundation capable of withstanding global economic uncertainty, yet it must expedite its transformation to achieve sustainable growth amid evolving business landscapes and investor behaviors. Agus H Widodo, CEO of Bank Jakarta, stated that the national banking sector's fundamentals remain solid, evidenced by positive credit growth, strong capital, adequate liquidity, and low non-performing loan (NPL) ratios.

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The issue is not with the fundamentals, but the playing field is changing.

"The issue is not with the fundamentals, but the playing field is changing," Agus explained during a discussion on Indonesia's Capital Market at the Indonesia Stock Exchange in Jakarta on Tuesday, June 30, 2026. He noted that the banking sector has faced numerous challenges, including the COVID-19 pandemic, geopolitical conflicts, and shifts in global trade policies, necessitating a departure from previous business strategies. Agus also pointed to increasing pressure on the cost of funds, with interbank deposit rates reaching 11.5 percent in one auction.

In response, Bank Jakarta is undergoing a comprehensive transformation across its business operations. This includes strengthening its business model, digitizing services, enhancing risk management, and fostering a new corporate culture. As a bank majority-owned by the DKI Jakarta Provincial Government, Bank Jakarta is also expanding its business by reinforcing its ecosystem with regional government entities, viewing the provincial budget's circulation as a growth opportunity. Furthermore, the bank is accelerating digital transformation through technology infrastructure upgrades, application development, and human resource competency enhancement.

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The risks going forward will be increasingly multidimensional.

Risk management is also a key focus, with Agus emphasizing the increasing multidimensional nature of risks, extending beyond credit to include cybersecurity threats. Meanwhile, Jeffry Hendrik, Director of Development at the Indonesia Stock Exchange (BEI), stressed the importance of enhancing investor quality to deepen the Indonesian capital market. He stated that the BEI, in collaboration with the Financial Services Authority and self-regulatory organizations, is promoting market transparency, providing more detailed investor data, deepening the market, and strengthening public disclosure. "We are confident that with better transparency, there will be higher trust," Jeffry said, noting that domestic investor numbers have surpassed 28 million, but quality must improve to form a solid foundation.

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We are confident that with better transparency, there will be higher trust.