Indonesian digital financial services and banking trends

Indonesia is seeing significant growth in digital financial services. As of mid-2026, buy now pay later (BNPL) financing grew by 54.65 percent year on year, reaching Rp13.62 trillion. Additionally, outstanding online loan financing increased by 22.07 percent year on year to Rp106.94 trillion by August 2026. While paylater services are often integrated into e-commerce platforms, online loans are noted for higher risks due to illegal applications operating without supervision.

In the banking sector, digital banks are offering deposit interest rates as high as 9 percent per year to attract funds amid liquidity challenges and market volatility. These rates exceed the 3.75 percent annual guarantee rate set by the Indonesia Deposit Insurance Corporation (LPS) for rupiah deposits for the period of October 1, 2026, to January 31, 2027. Consequently, deposits exceeding this rate do not meet LPS insurance requirements. Meanwhile, state-owned banks such as BRI, BNI, and Bank Mandiri have maintained lower interest rates, ranging between 2.50 percent and 3.00 percent depending on the tenor.

By September 2026, total public deposits in Indonesian banks reached Rp10,513 trillion, an 8.65 percent year-on-year increase. LPS Chairman Anggito Abimanyu reported that the proportion of deposits receiving interest rates above the LPS guarantee rate rose to 36.06 percent in September, up from 34 percent in August. This increase was primarily driven by private corporate and state-owned enterprise deposits. LPS is monitoring this trend regarding fund collection competition and its impact on individual banks.