Investors from Three Countries Look at Indonesian Banking, What Makes It Interesting?

Workers are active at the Indonesian Stock Exchange PT Gallery in Jakarta. The Financial Services Authority (OJK) clarified that there were no foreign investors who had resigned to expand into Indonesian banking.

The Financial Services Authority (OJK) clarified that there were no foreign investors who had resigned to expand into Indonesian banking.

OJK Banking Supervision Chief Executive Dian Ediana Rae said, instead foreign investors from several countries are looking at domestic banking as an opportunity.

"Regarding questions from foreign investors, I'm actually surprised where did I hear that foreign investors are resigning? In fact, requests to us are from Japan, from South Korea, and even neighboring Singapore is increasing now. That's a request to be able to acquire local banks, for example That's it," he said in a press conference on the Results of the June 2023 OJK Board of Commissioners Meeting (RDK), Tuesday (4/7/2023).

According to him, the Indonesian banking sector is also a support for the movement of the Composite Stock Price Index (IHSG) this year.

"Well, I also think that if we look at the performance of our banks nationally, one of the main drivers in the capital market is the banking industry, which is currently attracting the attention of foreign parties," said Dian.

Apart from that, in the not too distant future, OJK will announce several acquisitions and mergers that may take place this year or at least early next year.

"So there is no shortage of confidence, in fact now they are spurring their credit expansion to foreign banks in Indonesia at the moment," he concluded.