Bank Jakarta and IDX Unite to Drive Transformation and Quality Amid Economic Dynamics

The national financial industry is considered to still have strong fundamentals amidst various global economic challenges. However, changes in the business landscape and market behaviour mean industry players must transform to remain relevant and achieve sustainable growth. Bank Jakarta President Director Agus H. Widodo stated that the fundamentals of national banking remain sound. This is reflected in positive credit growth, strong capital, maintained liquidity, and a relatively low non-performing loan (NPL) ratio. ‘The issue is not actually the fundamentals, but that the playing field has changed,’ Agus said during a talk show titled ‘Shaping the Next Era of Indonesia’s Capital Market’ at Investor Day 2026, held at the Indonesia Stock Exchange building in Jakarta on Tuesday (30/6/2026). According to him, the banking industry has faced various unpredictable dynamics in recent years, ranging from the Covid-19 pandemic and global geopolitical conflicts to changes in international trade policy. These conditions mean banks can no longer execute business strategies as usual. Agus also highlighted the pressure on the banking industry’s cost of funds. He noted that deposit interest rates in interbank fund auctions had touched 11.5 percent, signalling rising costs for the industry in raising funds. In response to these changes, Bank Jakarta is undertaking a transformation across various business aspects, including strengthening its business model, digitising services, enhancing risk management, and reforming corporate culture. As a bank majority-owned by the DKI Jakarta Provincial Government, Bank Jakarta is focusing its business development on strengthening the local government ecosystem. Agus mentioned that the budget turnover within the DKI Jakarta Provincial Government holds significant potential to become a source of sustainable business growth for the company. Additionally, Bank Jakarta is accelerating a comprehensive digital transformation, from upgrading technology infrastructure and developing applications to improving human resource competencies. Strengthening risk management is also a primary concern. According to Agus, the risks faced by the banking industry are no longer limited to credit risk but are increasingly multidimensional, including cybersecurity threats. ‘The risks ahead will be increasingly multidimensional,’ he stated. Meanwhile, IDX Development Director Jeffry Hendrik emphasised the importance of strengthening investor quality to support the deepening of Indonesia’s capital market. Jeffry said that together with the Financial Services Authority and self-regulatory organisations, the IDX continues to encourage market transparency, the provision of more granular investor data, market deepening, and the strengthening of public disclosure. ‘We believe that with better transparency, there will certainly be higher trust,’ Jeffry said. He revealed that the number of domestic investors has now surpassed 28 million. However, this increase in quantity must be accompanied by an improvement in quality to form a strong foundation for the national capital market. Jeffry stressed that the capital market needs investors with adequate literacy and understanding of investment. Investors must also understand their respective risk profiles and not merely follow market trends. The message aligns with the strategy implemented by Bank Jakarta in facing current economic dynamics. Agus stated that the company is no longer chasing growth alone, but prioritising healthy and quality growth. ‘We are not chasing massive growth, but we are pursuing healthy and quality growth,’ Agus said. Both the banking sector and the capital market assess that quality will be the determining factor in maintaining the resilience of the financial industry going forward. Digital transformation, strengthened governance, transparency, and improved financial literacy are considered essential foundations for facing increasingly rapid and complex changes.