National Fintech Dominates Digital Payments

The increasing penetration of internet and smartphones is opening up more opportunities for digital transactions in Indonesia. Furthermore, the growing number of Generation Z, who are digital natives, within Indonesia's 250 million population will support the growth of the domestic fintech (financial technology) sector.

According to Statista data, the Indonesian fintech market was estimated to reach US$18.65 billion in 2017 and is projected to increase to US$37.15 billion in 2021. Of this amount, more than 99 percent comprises digital payment transactions. The remainder consists of financial and personal finance businesses.

Digital payments in 2017 comprised: digital commerce (digital trade payments) valued at US$18.55 billion, mobile payments at US$9 billion, and Peer-to-Peer Money Transfers at US$48 billion.