OJK: Indonesia's Economy Requires New Financing Sources to Boost Growth
The Financial Services Authority (OJK) has stated that Indonesia requires new financing sources to support national economic growth targets amid substantial development funding needs in the coming years.
OJK Commissioner Chairperson Friderica Widyasari Dewi said national financing cannot rely solely on the banking sector. She stressed the need for deeper capital markets and alternative financing instruments to achieve economic growth targets.
“Looking at economic growth targets, for instance in 2027, data from Bappenas indicates Indonesia needs substantial financing to support our economic growth, possibly around Rp8,600 trillion. This cannot be supported solely by banks and others; new financing sources must emerge,” Friderica said at the National Conference on Regional Economic Development (KNPED) in Jakarta on Monday, 25 May 2026.
The OJK has prioritised capital market deepening to support national development financing. One instrument being promoted is capital market-based, including regional bond development to support local infrastructure.
Additionally, the OJK is pushing for increased financial services sector financing, strengthening the MSME financing ecosystem, and developing a green economy through carbon value and sustainable finance.
Friderica explained that developing secure and integrity-driven digital finance, strengthening Islamic financial services, and improving financial literacy and inclusion are also key focuses to support national economic growth.
She noted that Indonesia’s current economic growth remains below the potential rate required for the country to become a developed nation.
Therefore, Friderica believes the financial services sector must play a more strategic role, not just as an investment vehicle but as a long-term financing source for the national economy.
During the event, the OJK also highlighted the importance of regional economic development as a pillar of national economic growth. The Regional Economic Development (PED) programme is currently active in 40 districts and cities across Indonesia, focusing on agriculture, creative economy, and tourism.
Friderica explained the programme aims to optimise regional economic potential sustainably through market expansion and increased economic benefits for communities and businesses.
“Cross-sector collaboration and synergy are key to transforming regional strengths into productive advantages with tangible impacts,” Friderica said.
She added that the PED programme is expected to boost investment, productivity, employment, exports, and public welfare.
Friderica also reminded the importance of maintaining optimism for the national economy amid global dynamics by strengthening the role of regional economies as a growth engine for Indonesia.