Foreign Banks Target Credit Expansion in Key Sectors

Amid global turmoil currently impacting Indonesia’s financial markets, JPMorgan Chase Indonesia & SEA Global Corporate Banking Head Hioshia Ralie outlined several strategies banks can employ to drive business growth, strengthen liquidity, and increase lending. Banks are encouraged to seek business growth opportunities, with foreign banks able to assist multinational companies in establishing operations in Indonesia through financing, treasury services, and custodian services, such as for companies like BYD. Meanwhile, local companies with strong fundamentals operating domestically or expanding into export markets, including those affiliated with Danantara, can serve as pillars for banking business growth. Hioshia Ralie also sees positive potential in the move by several banks in the KBMI 2 category to upgrade to KBMI 3, as this will enhance competitiveness. The potential for banks to list on the Indonesian stock exchange is also viewed as highly positive for strengthening their business.