According to the Financial Services Authority (OJK) data, as of September 2023, there are 39 foreign banks operating in Indonesia, originating from 15 countries.
These foreign banks consist of 32 foreign exchange national private banks (BPD) and seven foreign bank branch offices (KCBA). Japan holds the most significant number of foreign banks in Indonesia, with eight banks, followed by Singapore with four banks and Malaysia with two banks.
Foreign banks in Indonesia cater to various market segments, ranging from corporations, SMEs, to consumers. Some foreign banks specialize in areas such as trade finance, treasury, or wealth management.
Foreign banks also boast advantages in technology, innovation, and international networks. However, they face challenges competing with local banks, particularly in market penetration, operational costs, and regulations.
