While GDP expansion is projected to moderate to 4.8% in 2023 from a multiyear high of 5.3% in 2022, the pace of growth will still settle at about 5% per year through 2026, S&P Global Ratings said in a July 5 report. The World Bank also expects the country's growth in 2023 to moderate to 4.9%, according to a report released in June.

Meanwhile, Indonesian lenders took three of the top six slots in a ranking of the 20 largest banks in Southeast Asia by market capitalization in the quarter ended June 30 as the country's economy recovered.

PT Bank Central Asia Tbk remained the largest Southeast Asian bank after its market cap increased 4.57% to $75.23 billion in the second quarter, according to S&P Global Market Intelligence data. PT Bank Rakyat Indonesia (Persero) Tbk secured the third place in the ranking with a market cap of $54.60 billion, while PT Bank Mandiri (Persero) Tbk was ranked sixth with a market cap of $32.37 billion. PT Bank Negara Indonesia (Persero) Tbk, the fourth Indonesian lender on the list, retained its 12th position.

Indonesia's "economy is benefitting from a sustained recovery in private consumption, which accounts for over 50% of Indonesia's GDP," Fiona Leong, head of regional banks at RHB Research Institute, told Market Intelligence in an email. "With economic growth expected to gather momentum in the second half of 2023, this should result in strong loan growth."