Roadmap Pengembangan Perbankan Indonesia 2020-2025

Otoritas Jasa Keuangan

17 Feb 202105:01

Summary

TLDRThe 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.

Outlines

00:00

🏦 Challenges and Resilience in Indonesian Banking

The Indonesian banking sector is facing both short-term uncertainties and structural challenges due to the lingering effects of the COVID-19 pandemic, which can impact the performance of banks. There are also concerns about the scale of operations and competitiveness in the banking sector. The economic and financial development, along with societal behavioral changes and the significant need for medium to long-term national development funding, are highlighted. The Indonesian government, through OJK, aims to address these challenges and opportunities by releasing a roadmap for the development of the banking sector from 2020 to 2025. This roadmap is designed to create a resilient banking system that is competitive and contributes to the economy, with special attention to banks with unique characteristics such as Islamic banks and people's credit banks. OJK will release separate roadmaps for these types of banks to enhance their resilience and competitiveness.

📈 Strategies for a Resilient and Competitive Banking Sector

To create a resilient, competitive, and contributive banking sector, the roadmap outlines four main strategies, which are the four pillars of the RP2I (Roadmap for the Development of the Indonesian Banking Sector). The first pillar focuses on strengthening the structure and competitive advantage of banks, supported by initiatives such as increasing capital, consolidation, and enhancing business group management, as well as improving governance and efficiency. The second pillar accelerates digital transformation through initiatives that include strengthening IT governance and risk management, encouraging the use of game-changing technologies like Open API, Cloud, Blockchain, and the implementation of advanced digital banking solutions. The third pillar aims to strengthen the role of banking in the national economy, optimizing its role in financing the economy, promoting financial market deepening, and encouraging Islamic banking to be a catalyst for the Shariah economy. The fourth pillar focuses on strengthening regulatory and supervisory frameworks, using a principle-based approach, enhancing licensing through technology, and improving supervision with optimal technology utilization.

🤝 Supporting Pillars for Banking Sector Resilience

The four main pillars are supported by four supporting mechanisms, which include leadership and management, change management, quality and quantity of human resources, and technological infrastructure. Synergy and collaboration among all stakeholders are emphasized to achieve the goals of creating a resilient, competitive, and contributive banking sector. The detailed initiatives under each pillar are aimed at realizing a banking system that can withstand challenges and contribute significantly to the national economy.

Mindmap

Keywords

💡National Banking

National banking refers to the financial institutions and systems that operate within a country's jurisdiction. In the video's context, it is facing both short-term uncertainties and structural challenges, highlighting the importance of these institutions in the economy. The script mentions that the end of the COVID-19 pandemic still casts a shadow over the recovery process, affecting the banking sector's performance.

💡Structural Challenges

Structural challenges are deep-rooted issues that require significant changes or reforms to be addressed. The script discusses these in relation to the banking sector, including the scale of operations and the competitiveness that need to be enhanced to meet the evolving economic and financial landscape.

💡Microfit 19

Microfit 19 seems to be a term used in the script to refer to the microeconomic impacts of the COVID-19 pandemic. It is mentioned as a lingering concern that continues to affect the economic recovery process and, by extension, the banking sector's performance.

💡Digital Transformation

Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how a company operates and delivers value to customers. The script emphasizes the need for banks to embrace digital technologies like Open API, Cloud, and blockchain to stay competitive in the digital era.

💡Economic Recovery

Economic recovery refers to the period after a recession or economic downturn when economic indicators improve. The script suggests that the banking sector's performance is closely tied to the pace and effectiveness of economic recovery from the pandemic.

💡Financial Development

Financial development pertains to the growth and advancement of a country's financial sector, including the availability of credit, the efficiency of financial intermediaries, and the depth of financial markets. The script discusses the need for financial development to support long-term economic growth.

💡Roadmap for Development

A roadmap for development is a strategic plan outlining the steps and initiatives to achieve specific goals over a set period. The script mentions the OJK's roadmap for Indonesian banking from 2020 to 2025, which aims to create a resilient, competitive, and contributive banking sector.

💡Resilience

Resilience in the context of the banking sector refers to the ability to withstand or recover quickly from difficulties, such as economic downturns or crises. The script highlights the goal of creating a banking system that is resilient and can adapt to challenges.

💡Competitiveness

Competitiveness refers to the ability of a business or industry to compete effectively in the market. The script discusses several initiatives aimed at enhancing the competitiveness of banks through better governance and innovation in products and services.

💡Regulatory Framework

A regulatory framework consists of the rules and regulations that govern a particular sector or industry. The script mentions the strengthening of the regulatory framework to support the development of a resilient and competitive banking sector, including the use of principle-based approaches and technology.

💡Syariah Banking

Syariah banking, also known as Islamic banking, is a system that operates in accordance with Islamic law (Sharia), which prohibits charging interest and promotes profit-sharing. The script mentions the role of Syariah banking as a catalyst for the Shariah economy and the need for a separate roadmap for its development.

Highlights

National banks still face both short-term and structural challenges.

Uncertainty due to the end of COVID-19 continues to overshadow economic recovery processes.

The performance of banks can be affected by the economic recovery process.

There are structural banking challenges related to the scale of operations and competitiveness.

Economic and financial developments are centered around societal behavior changes.

There is a significant need for long-term medium-term national development funding.

Indonesian banks are expected to address challenges and opportunities, especially during the pandemic.

Banks are expected to be competitive in the digital era and play a role in the national economy.

OJK releases the Roadmap for the Development of Indonesian Banking for 2020 to 2025.

The roadmap aims to create resilient, competitive, and contributive banking.

OJK will release separate roadmaps for sharia banks and people's credit banks.

Creating resilient and competitive banking will be achieved through four main strategies.

The first pillar is strengthening structure and competitive advantage, supported by four initiatives.

The second pillar is accelerating digital transformation through initiatives like strengthening IT governance and risk management.

The third pillar is enhancing the role of banking in the national economy, including optimizing financing roles and promoting financial market deepening.

The fourth pillar is strengthening regulatory and supervisory frameworks, using principle-based approaches and technology.

The four pillars are supported by four supporting instruments, including leadership, human resource quality, IT infrastructure, and collaboration.

All these pillars and initiatives aim to realize resilient, competitive, and contributive banking.