According to the World Bank’s forecast, Indonesia’s economic outlook for 2024 remains positive, but with slightly revised figures in its June update. Growth is projected to be in a range of 4.9% to 5.2%, reflecting recent adjustments due to softening global commodities. A resilient labour market coupled with optimistic consumer confidence bolster domestic consumption— Indonesia’s main growth driver this year. Inflation is projected to fall to 3% or slightly below, an almost accurate nod to the central bank’s target range for the year.

Alongside these projections, key trends continue to flourish, evolve and alter the banking industry. Soaring internet and mobile penetration rates are accelerating the adoption of fintech solutions, e-wallets, and cashless payments. The focus on financial inclusion is stronger than ever, with initiatives like agent banking, microloans, and customised products targeting the unbanked and underbanked populations.

The regulatory landscape is creatively mutating—embracing open banking APIs and fostering collaboration with fintechs to spur innovation and competition. Sustainable finance is also gaining momentum, with ESG considerations increasingly shaping investment decisions and product development.

However, challenges persist. Cybersecurity threats necessitate robust measures to protect data and build trust in digital platforms. Concurrent with constant innovation is responsible data handling in crucially addressing privacy concerns. Unequal access to technology, particularly in rural areas, hinders progress, and low financial literacy among individuals impedes effective inclusion.

Join us at Finance Indonesia 2024 for these insightful discussions with Indonesia’s leading figures, as we illuminate the path to a vibrant banking future for the country.