Indonesia Fintech Report 2021


September 2020


For the Indonesian fintech industry, the year 2020 has been a turbulent year. What are the risks and opportunities for the fintech industry in Indonesia in the post-pandemic era? What impact will the Indonesian government's policies have on the industry?

ADVANCE.AI issued the Indonesia Fintech Report (Q2) (hereinafter referred to as "Report"), through a variety of collection, verification and certification with a view to providing valuable references for industry companies in terms of industry governance, risks and compliance, and better addressing the new risks and opportunities in the post-pandemic era, with extensive experience in operating in the Indonesian market and vast resources rooted in the Southeast Asian market.


This Report begins with a presentation and review of Indonesia's macroeconomic data for the first half of 2020. Then it details three aspects: "Fintech: Risks and Opportunities in Crisis", "A New Regulatory Framework in the Works" and "New Business Model and Technological Change".

Indonesia began to implement large-scale social restrictions (PSBB) in April 2020 to contain the spread of the COVID-19, putting a damper on urban mobility and socioeconomic activities, various economic indicators have been under pressure since then. However, the financial services industry remains in a relatively positive state due to the well-controlled prudential indicators, with fintech loans still growing and playing an active role.

Under such circumstance, the Report provides a comprehensive display and interpretation of economic growth, import and export trade, open unemployment rate and other data released by Statistics Indonesia (BPS), as well as authoritative predictions for various indicators in Q3 and Q4. It also elaborates on the National Economic Recovery Program that has been launched by the Indonesian government by comparing its macroeconomic policies during the pandemic.

Against the backdrop of overall economic data, the report focuses on the Indonesian fintech industry and provides a visual and vivid representation of licenses for fintech lending companies, accumulated fintech loan allocations and non-performing loan ratios with detailed charts and graphs. In addition, it demonstrates the risks and challenges faced by the Indonesian fintech industry more precisely and points out the trends and opportunities for future development.

It is worth mentioning that the Report also provides an interpretation of Indonesia's new surveillance framework, reveals the movements of the 158 members of Indonesia's Fintech Lenders Association (AFPI), as well as relevant financial and monetary policies issued by government departments or institutions such as the Financial Services Authority (OJK) during the COVID-19 pandemic.

Blockchain has become a global buzzword at the moment, and the Report provides a full outlook on the fintech industry, arguing that the surge of funding and innovation in Indonesia will continue as blockchain and fintech shift from retail-oriented to more institutional uses. It is proposed that in this context, the fintech industry should have more efficient and intelligent risk control.

Overall, it is a report with the exclusive data, rich information, authoritative analysis, and clear views, which provides unique and practical reference and guidance for relevant industries and fields.

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