Indonesia Retail Banking: Opportunities and Risks to 2023

Summary

Indonesia’s total of outstanding loan balances (including residential mortgage balances outstanding, personal loan balances and credit card balances) recorded a compound annual growth rate (CAGR) of 8.3% during the review period (2014-2018), reaching IDR$2,750.5tn ($191.18bn). The majority of loan balances outstanding are from personal loans; personal loan balances outstanding accounted for 79.2% of total balances in 2018, followed by home loans (17.8%) and credit cards (3%). The mortgage loans market was the fastest-growing market during the review period. The Indonesian lending space is dominated by Bank Central Asia (BCA), Bank Mandiri, Bank Tabungan Negara and Bank Rakyat. In the coming years, the publisher expects the consumer lending market to grow at a slower pace due to economic headwinds.

The savings market in Indonesia recorded a CAGR of 7% over 2014-2018, reaching IDR$3,249.8tn ($225.88bn) in 2018, mainly due to falling deposit interest rates. The performance of this market is expected to weaken slightly over the forecast period.

Based on our proprietary datasets, this report analyzes the Indonesianlending market, with a focus on the consumer lending segment. The report discusses in detail the credit card, personal, and mortgage loan markets, covering market size, competitors’ market shares, and survey insights. The report also provides a market overview and insights on the retail deposit segment. In addition, it covers the key digital disruptors in the Indonesian retail lending segment.

Scope

• The Indonesian residential mortgage market grew at a slower pace during 2014-18 than previous years, as the central bank increased interest rates and tightened regulatory policies to control house price growth.
• Indonesia’s personal loan market recorded a CAGR of 8% during 2014-18, to reach IDR2, 177.3tn ($151.34bn).The growth in personal loans was supported by a steady fall in interest rates, unemployment and inflation.
• Indonesians mainly prefer cash payments and direct debits. The uptake of credit cards among Indonesians is low compared to its peer countries. Credit card balances outstanding recorded a CAGR of 7.1% during 2014-18.

Reasons to Buy

• Make strategic decisions using top-level historic and forecast data onthe Indonesianretail lending industry.
• Identify the most promising lending segment.
• Receive detailed insights into lending in Indonesia, including consumerlending.
• Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the retail lending space.
• Receive comprehensive coverage of the retail deposit market in Indonesia.