Banking

With rising levels of public participation, a robust regulatory framework and high profitability at most institutions, Indonesia’s banking sector performed strongly in 2015-16, building on nearly a decade of expansion and rapidly increasing returns. The sector comprises 118 commercial banks and more than 1600 rural regional banks – the latter of which are allowed to operate only in a relatively small, predetermined geographical area. The industry boasted combined assets of Rp6198.15trn ($452.5bn) at the end of January 2016, the majority of which were held in a handful of leading institutions.

This chapter contains interviews with Kartika Wirjoatmodjo, President-Director, Bank Mandiri; Asmawi Syam, President-Director, Bank Rakyat Indonesia; and Batari Sianturi, CEO, Citi Indonesia, and Chairman, International Banks Association of Indonesia.