Editor’s Note
- Indonesian Financial Sector Plagued by Global Uncertainty
- Indonesia’s Economic Growth Remains Consistently Around 5 Percent
- Indonesia’s Financial Product Supply Is Growing
Indonesia’s Financial Sector Plagued by Global Uncertainty
The Indonesian Financial Services Authority (OJK) has stated that the Indonesian financial sector continues to be plagued by global uncertainty, which is affecting the national economy.
Friderica Widyasari Dewi, Acting Chair and Vice Chair of the OJK Supervisory Board, stated that global risks continue to rise, along with ongoing geopolitical and geoeconomic fragmentation, and increasing market attention to the potential asset price bubble in the artificial intelligence sector.
“Currently, we are still looking at the global landscape, and there is still a lot of uncertainty,” she said during the virtual Economic Outlook 2026 event, hosted by the OJK Institute on Thursday, February 19, 2026.
Indonesia’s economic growth remains consistently around 5 percent
According to her, these conditions have led to increased volatility in global financial markets, an extension of the restrictive monetary policy phase, and a decline in the outlook for global economic growth below its long-term historical average.
Nevertheless, the woman, known as Kiki, believes that the Indonesian economy continues to perform strongly and demonstrates robust resilience despite global challenges. For example, national economic growth has consistently remained around 5 percent.
“The domestic economy grew by 5.11% in 2025. This is higher than in the previous two years. We also saw Indonesia’s economic growth in the fourth quarter of 2025 reach 5.39% year-on-year. This is one of the highest growth rates among G20 countries,” she said.
Financial products in Indonesia are growing
Furthermore, data from the Central Bureau of Statistics (BPS) shows that the financial services sector grew by 7.92% year-on-year during the same period. This is the highest growth since the second quarter of 2021.
“This growth was driven by the continued expansion of financial intermediation, reflected in credit growth, and the improved performance of the insurance and pension fund sector, which returned to positive growth after contracting in the previous two years,” he said.
On the other hand, the financial sector’s contribution to the national economy also continues to grow. This is reflected in Indonesia’s financial assets-to-products ratio, which now represents 184% of Indonesia’s GDP.
This development aligns with the increasing role of the capital market in financing the national economy, as well as the broader diversification of financial products available to the public and businesses.
“We all know that the current structure of the domestic economy is still bank-led, or largely dominated, with financial intermediation still dominated by banks,” he said.
Therefore, he continued, deepening the financial market is a primary focus of the OJK by strengthening the role of the capital market, diversifying financing sources, and reducing the risk of maturity-funding mismatch in the national financial system. ***obs
