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Banks Secretly Close Thousands of Branch Offices, Because of Digitalization?

Jakarta

Amount bank branch continues to shrink every year. Quoted from Indonesian Banking Statistics (SPI) data for the period of February 2022, the number of bank offices was recorded at 28,350 units from 107 banks.

This figure has decreased by 2,597 units since 2019, which reached 31,127 units from 110 banks. In 2020 the number of bank offices was recorded at 30,733 units from 109 banks. Then in 2021 the number of bank offices was recorded at 29,999 units from 107 banks.

OJK data also states that the number of offices from four state-owned banks is 14,595 units. This figure decreased by 3,026 units from the 2019 period which amounted to 17,621 branch office units.

Furthermore, for Regional Development Banks (BPD) there were 4,983 units out of a total of 27 BPD banks.

Then national private banks recorded 8,925 branch office units from the total of 68 bank units in the February 2022 period. This figure decreased by 149 units compared to the 2019 period which was recorded at 9,074 units from 71 private banks.

In addition, there is a number bank branch domiciled abroad. As of February 2022, there were 27 branch offices from 8 banks. Then in 2019 36 branch offices from 8 banks.

Thousands of bank branch offices closed due to digitization? Check the next page.

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