The number of foreign financial companies acquiring domestic multifinance entities is increasing. The most recent one is the Mandala Multifinance (MFIN) acquisition by the Japanese financial group MUFG Bank Ltd.
A statement made by Coordinating Minister for Political, Legal and Security Affairs Mahfud MD regarding suspicious transactions worth Rp 349 trillion involving Finance Ministry has been in the public spotlight in recent weeks.
Market confidence has not returned to normal even though US and Swiss regulators have stepped in. Indonesia's central bank and financial authority are confident but cautious.
More than 500 bankruptcy cases were registered so far this year. A total of 15 public companies are facing bankruptcy claims. Meanwhile, more than Rp 800 trillion in loans from millions of MSME and non-MSME debtors had undergone restructuring.
Banks are under massive pressure due to the high number of NPLs, despite implementing COVID-19-related programs of credit restructuring. Since May, the NPL ratios have reached three percent of total bank credit.