Indonesia’s big four banks—BCA, Mandiri, BNI, BRI—are still reeling from extreme macroeconomic volatility driven in part by sudden swings in government policy. We all know things are pretty bad financially. During the first three quarters of 2025, the nation’s biggest banks had announced their worst financial results. This drop represents the greatest crisis for these institutions since the COVID-19 pandemic.
The macroeconomic environment has changed quite a bit since then. Consequently, banks are acutely experiencing the effects of government-imposed rules that have severely shifted market conditions. Unfortunately, these policy changes have helped to wear down the consumer confidence that is so critical to maintaining the banks’ profitability, making the banks’ struggle all the more daunting. Of Indonesia’s four other largest banks, only Bank Central Asia—BCA—saw net profits increase during this period. This achievement is a testament to BCA’s perseverance in a struggling industry.
Even with this widespread retreat from promising financial performance, one group stands apart—Shariah-compliant financiers. Yet these institutions have shown extraordinary resolve in the face of the industry’s overall dismal results. In doing so, they have found a way to weather weak consumer sentiment and overtaken the stability and growth that has eluded the legacy banks.
The recently released financial results from the first three quarters of 2025 show an alarming story for Indonesia’s banking sector. Even before the pandemic, major banks were under intense scrutiny as they were forced to pivot their practices to address emerging economic realities and governmental priorities. This comes in the context of adapting to less loan demand and higher costs of doing business, which have both compressed margins universally.
Bank Central Asia is toasting strong net profit growth of nearly three-quarters. Analysts say it is due to the bank’s extreme commitment to customer service and digital banking prowess that likely helped propel this success. Other big banks have greatly faltered in contrast. This means they might have to further update their business models and plans for the post-pandemic era.