Roadmap Pengembangan Perbankan Indonesia 2020-2025

Summary

The Indonesian banking sector faces short-term uncertainties and structural challenges, including the impact of the COVID-19 pandemic on economic recovery and the banking industry's performance. To address these issues and seize opportunities, the OJK has released a roadmap for the development of Indonesian banking from 2020 to 2025. This roadmap aims to create a resilient, competitive, and economically contributing banking system, focusing on four main strategies: strengthening structure and competitiveness, accelerating digital transformation, enhancing the role of banking in the national economy, and strengthening regulatory and supervisory frameworks. These strategies are supported by initiatives such as increasing capital, improving governance, promoting innovation in products and services, and optimizing the use of technology.

Takeaways

• 🏦 The national banking sector in Indonesia is facing both short-term uncertainties and structural challenges, including the impact of the COVID-19 pandemic on economic recovery and banking performance.
• 🌐 The end of the microfit 19 program still looms over the recovery process, indicating ongoing concerns about the banking sector's ability to adapt and perform.
• 💼 There are structural challenges in the banking sector related to the scale of operations and competitiveness that need to be addressed.
• 📈 The development of the digital economy and changes in societal economic behavior, along with the significant need for long-term medium-term national development financing, are highlighted as key areas for the banking sector.
• 🛣️ OJK (the Financial Services Authority of Indonesia) has released a roadmap for the development of Indonesian banking from 2020 to 2025, aiming to create a resilient, competitive, and contributive banking system.
• 🏗️ The roadmap includes strategies for banks with unique characteristics such as Islamic banks and people's credit banks, with separate roadmaps to be published for these entities.
• 💡 The development of a resilient and competitive banking system will be achieved through four main strategies, forming the four pillars of the OJK's roadmap.
• 🔑 The first pillar focuses on strengthening the structure and competitive advantage of banks, supported by initiatives to increase capital, consolidate and strengthen business groups, and improve governance and efficiency.
• 🌐 The second pillar is the acceleration of digital transformation, which includes initiatives to strengthen IT governance and risk management, encourage the use of IT gamechangers like Open API, Cloud, Blockchain, and Omni-channel, and promote collaboration on technology.
• 💼 The third pillar emphasizes strengthening the role of banking in the national economy, including optimizing financing for the retail economy, deepening the financial market, promoting Islamic banking as a catalyst for the Sharia economy, and increasing access to and financial education for sustainable financing.
• 🛡️ The fourth pillar is about strengthening regulatory and supervisory frameworks, using a principle-based approach, leveraging technology for more efficient regulation and supervision, and consolidating the banking system.
• 🔄 The four pillars are supported by four supporting instruments, including leadership and management, change, quality and quantity of human resources, information technology infrastructure, and synergy and collaboration among stakeholders.

Q & A

What challenges does the national banking sector face in the short term?

The national banking sector faces uncertainties in the short term, including the end of microfit 19, which still haunts the economic recovery process and can affect the performance of banking.

What structural challenges in banking are mentioned in the script?

Structural challenges in banking include issues related to the scale of operations and small competitiveness, as well as the development of the economy and finance in the digital era.

How does the script describe the impact of the economic and financial development on the banking sector?

The script suggests that the development of the economy and finance, particularly in the digital era, is accompanied by changes in economic behavior and the significant need for long-term national development financing, which can affect the banking sector.

What is the purpose of the OJK's roadmap for the development of Indonesian banking from 2020 to 2025?

The purpose of the roadmap is to create a resilient banking sector that is competitive and contributes to the economy, including banks with unique characteristics such as Islamic banks and people's credit banks.

What are the four main strategies or pillars mentioned in the OJK's roadmap?

The four main strategies or pillars are: 1) Strengthening structure and competitive advantage, 2) Accelerating digital transformation, 3) Enhancing the role of banking in the national economy, and 4) Strengthening regulation and supervision.

How does the roadmap plan to increase the capital of banks?

The roadmap plans to increase bank capital by consolidating and strengthening business groups, as well as improving governance and efficiency.

What initiatives are proposed to accelerate digital transformation in the banking sector?

The initiatives include strengthening governance and risk management of information technology, promoting the use of IT gamechangers like Open API, Cloud, Blockchain, and Omni-channel, and encouraging collaboration related to technology.

How does the roadmap aim to enhance the role of banking in the national economy?

The roadmap aims to optimize the role of banking in financing the economy, promote the deepening of the financial market through multi-business activities, encourage Islamic banking to be a catalyst for the Islamic economy, and increase access and financial education.

What are the four supporting instruments mentioned in the script to achieve a resilient, competitive, and contributive banking sector?

The four supporting instruments are leadership and management, change, quality and quantity of human resources, information technology infrastructure, and synergy and collaboration among all stakeholders.

How does the roadmap address the strengthening of regulation and supervision in the banking sector?

The roadmap strengthens regulation with a principle-based approach, enhances licensing through the use of technology, improves supervision with optimal technology utilization, and consolidates bank supervision.

What is the expected outcome of implementing the OJK's roadmap for Indonesian banking?

The expected outcome is to achieve a banking sector that is resilient, competitive, and contributes significantly to the national economy, especially in the face of challenges such as the COVID-19 pandemic and the digital era.