Indonesia banking sector sees bank closures and legal disputes

Indonesia's banking sector is seeing significant activity, including the closure of 13 banks through September 2026. The Deposit Insurance Corporation (LPS) has stated that customer funds within the guarantee scheme—up to Rp2 billion per customer—will be repaid within five days of the liquidation process beginning. LPS is also developing a core system to ensure real-time banking data for more efficient resolution processes.

In corporate developments, PT Bank Tabungan Negara (Persero) Tbk (BTN) is preparing legal action, including a formal summons, against a social media influencer regarding claims of a Rp17 billion customer fund issue. BTN maintains that the claims are misleading and do not align with official documents, noting that a previous fraud case involving a former employee has already resulted in a prison sentence.

Meanwhile, PT Bank Central Asia Tbk (BCA) has collaborated with Batavia Prosperindo Aset Manajemen to launch the Batavia Gold Sharia Equity USD mutual fund. This USD-denominated sharia product targets aggressive investors seeking exposure to the gold and precious metals sectors. Additionally, BCA Syariah reported that its assets in West Java reached Rp1 trillion as of July 2026. In the technology sector, investment in Indonesian data centers is rising as a proxy for artificial intelligence growth, with market projections reaching up to US$ 8.4 billion by the 2030s.