Indonesia Fintech Report 2021


July 2021


The year 2020 has been a turbulent year for the Indonesian fintech industry. The main questions facing the industry now are: what are the risks and opportunities for the fintech industry in Indonesia in the post-pandemic era and what impact will the Indonesian government's policies have on the industry?

ADVANCE.AI issued the Indonesia Fintech Report (Q2) (Report), through a process of collection, verification, and certification, with a view to providing valuable references for companies in terms of industry governance, risks and compliance, and how to better address the new risks and opportunities in the post-pandemic era. ADVANCE.AI drew on its 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. It then details three areas: "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. As a result, 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 overview and interpretation of economic growth, import and export trade, the 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, which was 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.

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), and evaluates the relevant financial and monetary policies issued by government departments or institutions such as the Financial Services Authority (OJK) during the COVID-19 pandemic.

Blockchain, which has become a hot topic in the industry, is mentioned, 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, the Report’s exclusive data, detailed information, authoritative analysis, and clear views provide a unique and practical reference and guidance for relevant industries and fields.

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