Indonesian Financial Sector Outlook 2026

Challenges and Opportunities in Insurance Industry

The Indonesian insurance industry is facing significant challenges in 2026, particularly with the implementation of OJK Regulation No. 23/2023 requiring a minimum equity of Rp250 billion for insurance companies by the end of 2026 ¹

. The Indonesian General Insurance Association (AAUI) estimates that 10 companies may struggle to meet this requirement. Chairman Budi Herawan expressed hope that these companies could still achieve the minimum capital requirement. Additionally, the consolidation of state-owned insurance companies from 15 to 3 entities is expected to reshape the industry landscape ¹

Source 1

https://finansial.bisnis.com/read/20251222/215/1938865/merger-bumn-dan-modal-minimum-jadi-tantangan-asuransi-umum-pada-2026

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Banking Sector Prospects

The Indonesian banking sector is expected to face both challenges and opportunities in 2026. The Financial Services Authority (OJK) projects that banking profitability pressures may ease as credit risk trends normalize and provisioning costs decrease ²

. The OJK expects credit growth to continue, with the national banking association (Perbanas) forecasting credit growth between 9-11% for 2026. Chairman Hery Gunardi noted that banks currently have ample liquidity, with loan-to-depositing ratio (LDR) around 84%, below the regulatory limit of 92% ²

Source 2

https://finansial.bisnis.com/read/20251222/90/1938690/kisi-kisi-kinerja-cuan-perbankan-ri-pada-tahun-kuda-api-2026

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Growth in Securities Crowdfunding

The securities crowdfunding (SCF) industry is showing positive growth prospects for 2026. PT Urun Bangun Negeri (Urun-RI) projects that SCF syariah funding will grow by 1.2-1.5 times in 2026 ³

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Source 4

https://keuangan.kontan.co.id/news/aludi-optimistis-pertumbuhan-scf-tetap-positif-pada-2026

. The Indonesian Securities Crowdfunding Association (ALUDI) also expects continued positive growth in the SCF industry, backed by historical trends showing increased funds raised from Rp1.12 trillion in 2023 to Rp1.93 trillion in 2025 ⁴

Source 4

https://keuangan.kontan.co.id/news/aludi-optimistis-pertumbuhan-scf-tetap-positif-pada-2026

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Key Challenges and Risks

1. Implementation of PSAK 117: The new accounting standard is expected to impact insurance companies' equity negatively.
2. State-owned enterprise consolidation: The merger of state-owned insurance companies will significantly alter the industry structure.
3. Geopolitical uncertainties: Global and domestic geopolitical factors may affect market penetration and growth.
4. Human resource limitations: The insurance sector still lags behind other ASEAN countries in terms of human resources.
5. Technological adaptation: The industry must adapt to emerging technologies like AI.