Fintech in Indonesia - statistics & facts
Indonesia is emerging as a major fintech player, strategically developing its digital economy to enhance financial inclusion and innovation. The country benefits from a high smartphone penetration rate, providing an essential foundation for adoption by a young, tech-savvy population. While a large proportion of the population has no access to traditional financial services, fintech solutions are bridging the gap by offering accessible alternatives. The Indonesian government is supporting this growth with a progressive regulatory framework, encouraging innovation while ensuring consumer protection through the Financial Services Authority (OJK). In recent years, significant investment has flowed into the sector, with the country's leading startups being fintech companies. This investment boom, combined with demand from a youthful population, is driving the development of user-friendly financial services that bypass the complexities of traditional banking.
Moreover, one of the main factors behind the success of fintech in Indonesia is the rapid adoption of digital payment platforms. These platforms have simplified transactions such as e-wallets, online banking, and the Indonesian Quick Response Code (QRIS), easing the transition from traditional offline to online financial activities. Such platforms are particularly accessible, as they do not require a bank account or credit card, with the use of e-money and e-wallets consequently exceeding that of other digital payment methods that require a bank account. Indonesia has more than 48 licensed e-wallet systems, operated by both the public and private sectors, with the most used e-wallets including GoPay, Dana, and Ovo. GoPay is integrated into Gojek, Indonesia's largest multiservice platform, while Ovo's growth is supported by partnerships with Grab and Tokopedia.
Currently, Bitcoin and Ethereum are the most popular cryptocurrencies in Indonesia, often seen as long-term investment holdings rather than exchange assets. In 2024, to stimulate growth in the domestic market, Bappebti considered a tax assessment that would require investors to bear only half the current tax burden. The sector is still performing positively, boosted by the rise in Bitcoin's price since January 2023.
Fintech lending and digital payments
The number of fintech companies in Indonesia has increased sixfold over the past decade, from 51 active players in 2011 to 336 in 2023. This growth is mainly driven by alternative lending and digital payments funding. The expansion of fintech in the country has been fueled by the rise of peer-to-peer (P2P) lending platforms that connect borrowers and lenders, offering new investment opportunities beyond traditional banking systems. It enables businesses, particularly small and medium-sized enterprises (SMEs), to access financing quickly and efficiently by tapping into a vast network of individual and institutional investors. As of March 2024, 94 conventional and seven Sharia fintech lending companies were operating in the country. Lending platforms, such as Akulaku and Kredivo, target the unbanked and underbanked population, who lack access to credit.Moreover, one of the main factors behind the success of fintech in Indonesia is the rapid adoption of digital payment platforms. These platforms have simplified transactions such as e-wallets, online banking, and the Indonesian Quick Response Code (QRIS), easing the transition from traditional offline to online financial activities. Such platforms are particularly accessible, as they do not require a bank account or credit card, with the use of e-money and e-wallets consequently exceeding that of other digital payment methods that require a bank account. Indonesia has more than 48 licensed e-wallet systems, operated by both the public and private sectors, with the most used e-wallets including GoPay, Dana, and Ovo. GoPay is integrated into Gojek, Indonesia's largest multiservice platform, while Ovo's growth is supported by partnerships with Grab and Tokopedia.
Cryptocurrency trends in Indonesia
Indonesia is also positioning itself on the global cryptocurrency scene. The country's regulator, the Commodity Futures Regulatory Agency (Bappebti), has established a legal framework for cryptocurrency trading, recognizing crypto assets as commodities that can be traded on futures markets. This proactive regulatory stance aims to ensure market integrity and consumer protection, while fostering innovation in the sector. In November 2023, cryptocurrency transactions in Indonesia reached around 17 trillion Indonesian rupiah. This rise was partly fueled by the launch of the world's first state-backed crypto-currency exchange in July 2023.Currently, Bitcoin and Ethereum are the most popular cryptocurrencies in Indonesia, often seen as long-term investment holdings rather than exchange assets. In 2024, to stimulate growth in the domestic market, Bappebti considered a tax assessment that would require investors to bear only half the current tax burden. The sector is still performing positively, boosted by the rise in Bitcoin's price since January 2023.
