Though Indonesia’s economy remains overshadowed by capital outflow and declining commodity prices—due to China’s economic slowdown—the banking industry would still have a sound fundamentals in 2016. Muliaman D. Hadad, chief commissioner of the Financial Service Authority (OJK), noted that the banking sector had strong liquidity and capital base. The sector has room to boost its loan growth by 12-14%, from 12-13% this year. Third party funds are also predicted to grow by 13-15% next year.To subscribe please click here