Once numbering 240, the number of general banks is now only 105.
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In 1988, the number of banks in Indonesia was only 111, increasing to 240 by the end of 1994.
The deregulation of the banking sector in October 1988, better known as "Pakto 88," led to a rapid increase in the number of banks in the 1990s.
At that time, the government eased regulations, allowing individuals to establish banks with a minimum capital of only Rp10 billion. As a result, entrepreneurs and wealthy individuals competed to own their own banks.
However, the 1997-1998 crisis resulted in many banks facing default and non-performing loans. Several banks were liquidated, recapitalized, or forced to merge to save the national banking system.
As a consequence of this crisis, the number of banks in Indonesia decreased, reaching only 151 in 2000. This number continued to decline, reaching 105 banks in October 2024, with the following breakdown:
* State-Owned Banks: 4 banks
* Regional Development Banks (BPD): 27 banks
* Private Banks: 67 banks
* Foreign Banks: 7 banks
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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