OJK: Universal Banking as Strategy to Strengthen Indonesia's Banking Industry
JAKARTA, KOMPAS.com — The Financial Services Authority (OJK) is encouraging the development of the universal banking concept as part of a strategy to deepen the national financial markets while strengthening the integration of financial services in the banking industry.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that this model enables banks to provide a variety of financial services within a single integrated entity.
“Universal banking is a banking model where one bank can provide various financial services in an integrated manner within one entity,” said Dian in a written statement from the OJK Commissioners’ Meeting, quoted on Wednesday (18/3/2026).
In addition, universal banking also encompasses treasury services and derivative transactions, trust fund management, as well as financial advisory.
According to Dian, the push for implementing universal banking aligns with the mandate of the Financial Sector Development and Strengthening Law (P2SK).
She assessed that this model has the potential to reshape the structure of the national banking industry, particularly in expanding the role of banks in the capital markets.
Dian added that Indonesia is one of the few countries that has not fully implemented universal banking.
However, experiences from several countries indicate that without this scheme, the process of deepening financial markets will proceed more laboriously.
She emphasised that universal banking has become a common practice in countries with advanced financial sectors such as Germany, the United Kingdom, and Singapore.
Dian revealed that the current banking business model in Indonesia still focuses on commercial banks that separate banking services, capital markets, and insurance within a financial conglomerate structure.
This condition is seen to indicate that there is still room for strengthening the overall integration of financial services.
OJK has also identified several banks that have subsidiaries in the capital markets sector, particularly securities companies.