The Indonesian banking sector remains relatively stagnant in 2016. In fact, some indicators points to a downturn characterized by the weak credit growth at 6.7 percent (year-on-year) as of August, much lower than the 10.8 of the same month, last year. Likewise, third party funds only grew 8.5 percent compared to 12.6 percent of August last year.

In response to the situation, the Financial Services Authority (OJK) has revised this year's credit g