The majority of Indonesian Fintech companies' main markets are located on Java Island.

Based on a survey report by the Indonesian Fintech Association (Aftech) and the Katadata Insight Center (KIC) titled *Annual Member Survey 2022/2023*, the majority of financial technology companies, or fintechs, in Indonesia have their main market on the island of Java.

Three cities dominate the fintech market share on Java. First is Jakarta, chosen by 88% of responding fintech companies.

Second is Bandung with 29.3%, followed by Surabaya with 28%.

However, only 5.3% of responding fintech companies reported serving the entire island of Java. Even fewer, 6.7%, serve the entire country.

Therefore, Aftech assesses that significant opportunities for expansion and increased financial inclusion throughout Indonesia remain.

"The fact that only 6.7% of Fintech companies serve all cities in Indonesia indicates significant potential for future growth and expansion," Aftech wrote in its report.

Meanwhile, areas outside Java, such as Medan, Makassar, and Nusa Tenggara, have less than 10% market share.

"The existing disparity in other regions is influenced by low financial literacy and uneven infrastructure development," Aftech explained.

According to Aftech, efforts to improve financial literacy and develop digital infrastructure throughout Indonesia need to be enhanced so that fintech companies can target a wider market share and achieve higher transaction values.

This survey involved 75 respondents representing Aftech member companies. Data collection was conducted in the second quarter of 2023 via online questionnaires.

(See also: Funding Sources for Fintech Startups in Indonesia, Majority from Venture Capital)