How Much is the Investment Value in Indonesian Fintech?

Indonesia is the largest economy in Southeast Asia, with a population estimated at 265 million in 2018. The majority of this population is under 35 years old, and the growth of smartphones and internet users presents an opportunity for the growth of national fintech (financial technology).

Total disclosed investment in Indonesian fintech in 2017 is estimated at US$176.75 million, or approximately Rp 2.56 trillion (at an exchange rate of Rp 14,500 per US dollar), from both local and global investors. This illustrates the enormous potential of the fintech market in Indonesia. One reason for this is that only about 49% of the adult population in Indonesia has access to banking services, leaving significant potential for the fintech market.

Meanwhile, the value of fintech transactions in 2018 is estimated at US$22.34 million, or approximately Rp 234 billion. Transaction value growth is projected at 16.13% per year. For information, the largest fintech market share is in payments (38%) and lending (31%).