Forecast: Number of Commercial Bank Branches in Indonesia

The number of commercial bank branches in Indonesia per hundred thousand adults has shown a general downward trend from 2013 to 2023. Starting at 17.64 branches in 2013, it peaked slightly in 2014 but then consistently declined until 2020, where it reached 15.22. This downward trend was slightly reversed in 2021, with a year-on-year increase of 3.81%. The value stood at 15.93 branches in 2023, showing minor growth with a year-on-year increase of 0.38% and a 5-year CAGR of -0.26%.

Future trends to watch for:

• A return to slow growth is forecasted, with an expected 5-year CAGR of 0.14% by 2028.
• Technological advancements and the rise of digital banking could significantly shape the need for physical branches.
• Regulatory changes and macroeconomic conditions will also play critical roles in determining the trajectory of commercial bank branches.