Indonesian banks to maintain growth

The strong rebound in the Indonesian economy this year is driving its banks to rank among the best performers in the world.

With an economy expected to grow at up to 6.5 percent this year, analysts remain impressed about Indonesia's growth.

They said that the banking sector has a lot more upside in the coming years.

Rising investments, higher demand for credit and an economy that is set for further growth are among the key factors that put Indonesian banks ahead of their Asian peers - with some generating return on equity of up to 20 percent.

An economist for Treasury Research and Strategy at OCBC Bank Gundy Cahyadi said: "Credit expansion is still very much strong in Indonesia. We are expecting to see about 25 percent expansion in 2011. And that is obviously a plus for the banking sector."