How many commercial banks were there in Indonesia before and after the 1998 crisis?

Based on data from the Indonesian Financial Services Authority's Banking Statistics, there were 115 commercial banks in Indonesia as of January 2019. This figure comprised 4 state-owned banks (Bank Persero), 42 national private commercial banks (BUSN) with foreign exchange facilities, and 21 BUSN without foreign exchange facilities. Furthermore, there were 27 Regional Development Banks, 12 mixed foreign banks, and 9 foreign banks. Mergers and acquisitions following the crisis led to a decrease in the number of banks in Indonesia.

For information, the October 1988 policy package, known as Pakto 88, spurred a proliferation of banks in Indonesia. As shown in the graph below, there were 111 commercial banks in 1988, increasing to 240 by 1994. This banking deregulation package allowed the establishment of a bank with a capital of only Rp 10 billion.

However, the 1997-1998 Asian economic crisis caused a drastic reduction in the number of banks in Indonesia, falling to 151 by 2000. Soaring inflation, reaching 70%, and a 13% economic contraction led to the closure of many banks.