Indonesia financial sector updates focus on MSME support and regulatory shifts

Indonesia's financial sector is undergoing various regulatory and developmental shifts focused on MSMEs and stability. The Financial Services Authority (OJK) is preparing a New Risk-Based Capital (RBC) scheme for insurance companies. While the minimum solvency ratio remains at 120%, the new calculation will be more sensitive to asset risks and aligned with updated accounting standards.

In the banking sector, the Indonesian Association of Rural Banks (Perbarindo) held its 12th National Congress, where leaders called for regulatory relaxation to help Rural Banks (BPR/BPRS) better serve MSMEs. Perbarindo emphasized that a one-size-fits-all regulation is ineffective due to the differing needs of state-owned versus regional banks.

Simultaneously, Bank Rakyat Indonesia (BRI) received the Niaga Werdhitama award for its efforts in empowering MSMEs to enter global markets. Bank Indonesia is also strengthening the sharia economic ecosystem in the Banyumas Raya region through halal MSME development and pesantren empowerment.

Regarding consumer protection, the Indonesia Deposit Insurance Corporation (LPS) is developing mechanisms to protect insurance policyholders through business transfers in the event of company failure. Meanwhile, PT Bank Perekonomian Rakyat (BPR) Universal reported a 115.61% increase in net profit through September 2026, driven by asset and third-party fund growth.