Alongside rising GDP and manageable public debt levels, Indonesia’s banks maintained robust performance in the six months leading to the pandemic. Monetary measures by the central bank to address headwinds in 2020 included lowering the reverse repo rate and purchasing government debt. In spite of challenges, in the first three quarters of 2020 banks sustained a consistent financing-to-assets ratio, commercial banks maintained high capital adequacy, and the country recorded positive direct and portfolio investment balances. With support from Bank Indonesia, digital banking transactions outpaced branch transactions for some players in the second half of the year.
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