Indonesia’s banking sector is experiencing explosive digital growth — and the transformation is accelerating. With over 280 million people and Southeast Asia’s largest economy, Indonesia presents unprecedented opportunities for both banks and technology providers. Digital banking transactions surged to IDR 71.58 trillion in 2024, while financial inclusion has reached 76% and continues climbing toward the government’s 90% target.

‍The regulatory environment has been revolutionised. The landmark P2SK Law enacted in 2023 modernised 17 financial sector laws, creating a comprehensive framework for digital banking, fintech innovation, crypto assets, and open finance. New cybersecurity regulations ensure resilient infrastructure, while Bank Indonesia’s QRIS standard — now deployed across 14.8 million merchants — has created seamless interoperability for digital payments nationwide.

‍For banks, the growth trajectory is exceptional. Digital banking revenue is projected to hit USD 8.6 billion by 2029, driven by Gen Z adoption and mobile-first platforms. Digital banks like Bank Jago, SeaBank, and Allo Bank are scaling rapidly, while traditional banks race to digitize through partnerships with super-apps like Gojek, Grab, Shopee, and Bukalapak. With 60 million micro and small businesses still underserved and vast rural populations gaining smartphone access, the expansion opportunity is massive.