Вы находитесь на странице: 1из 69

In the last two decades, Indonesias financial

industry has shifted due to the fast technology


growth and development.

From traditional financial system (bank driven), to the


financial technology (consumer driven), it enables
more players to emerge in Indonesia financial sector.
While there is no clear definition about fintech,
Bank Indonesia defines it as:

A phenomenon of fusion between technology and financial


features that transform business models and a weak
barrier to entry which lead to raises unregulated players to
run the service as well as regulated financial institutions.
Indonesias Fintech Association (IFA), established in 2015, was able to map

more than 120 fintech players as of today.

Indonesia Financial Service Authority is expected to release a new regulation

(POJK) specifically for off balance sheet (marketplace) lending by December

this year. On the other hand, Central Bank (BI) has launched BI Regulation on

Payments Transaction Processing (PBI PTP) this early November to provide

legal assurance for new and existing FinTech payments business activities.

They also has created a FinTech Office that is aimed to encourage innovation

to local FinTech startups by virtue of, among others, capacity building and the

implementation of regulatory sandbox.


This report is a curated and an aggregated

information on Indonesias Fintech scene in

2016, designed to help both local and foreign

entities to obtain better understanding on local

fintech landscape.
This report consists of three segments:

In collaboration with the Indonesias Fintech Association, we


curate and aggregate the information about local fintech
players and their respected area in Indonesia. This
informations are only focusing on a non-bank and non-telco
companies.

Survey added, in collaboration with JakPat, we are seeking


for awareness of fintech services using 1000 respondents.

DailySocial and Indonesias Fintech Association analyze and


validate conclusions of this survey.
CONTENT
Market Overview
Indonesias Fintech
Landscape
Investment Landscape
Consumer Awareness
Indonesia Fintech
Challenge
Conclusion
GENERAL MARKET OVERVIEW

As the worlds fourth most populous nation and the largest

economy in Southeast Asia, Indonesia has charted an

impressive economic growth since overcoming the Asian

financial crisis in the late 1990s.

The countrys gross national income per capita has

steadily risen from $560 in the year 2000 to $3,374 in

2015. The GDP in 2015 has reached 861.934 billion USD.

Source: World Bank and BCG


GENERAL MARKET OVERVIEW
Boston Consulting Group (BCG) in 2013 has predicted that

middle-class and affluent consumer (MAC) socioeconomic

category will begin to ramp up their spending in key segments

such as home goods, vehicles, consumer durables, and financial

services.

They said the number of MAC will be doubled by 2020, from 74

million in 2013 to roughly 141 million people. During that period,

some 8-9 million people will enter the middle class each year.

Source: World Bank and BCG


INTERNET & MOBILE MARKET

Today, the number of internet users in Indonesia


has exceeded over 100 million (APJII: 132.7
million).

51.8% are male and 48.2% are female

65% internet users are from Java Island

24 million Internet users are in 25-29 age range

326.3 million mobile subscription (126% population)

Source: APJII, Google, We Are Social


-41% 28% DEVICE USED
Desktop
& In 2016, the share of web page views
Laptop
from Desktop & Laptop only reach 28%.
Year-on-year its decreasing by 41%.

+41% 70% While Share of web page views from


Mobile
Phone Mobile Phone reach 70%.
Year-on-year its increasing up till 41%.

3%
When in come to tablet, share of web
-37%
page views only reach 3%.
Tablet Year-on-year its decreasing by 31%.

Source: We Are Social


AVERAGE TIME SPENT
By time spent, Indonesias people still spend a lot of time on PC or Tablet.
Average daily use of the internet via PC or Tablet is 4 hours and 42 minutes.
For Mobile Phone, the average daily use of the internet is 3 hours and 33
minutes.
As for Social Media, the average daily use is 2 hours and 51 minutes and lastly,
for Television is 2 hours and 22 minutes.

4.42

3.33
2.51
2.22

PC or Tablet Mobile Phone Social Media via Any Television


Devices

Source: We Are Social


FINTECH MARKET Source: OJK , World Bank, BI

Only 36% adults in Indonesia have an account at the formal financial institution.

The penetration of bank branches per 100K population is only 1/6 of the

penetration in European countries.

49 million SMEs unit not yet bankable.

There are Rp 988 trillion gap financing the development.

P2P lending is still under Rp 150 billion.

The share of new credit to GDP is still 34.77% (bank). It reflects a huge market

potential that can be targeted by fintech (P2P lending), without having to erode

banks market share.


FINTECH MARKET (2)
50% people send remittances through banks.

44% people borrow money from friends & family


members.

27% people save money in their bank account.

9% people use credit cards for payments.

Source: Indonesias Fintech Association


FINTECH IS NOT A NEW
PHENOMENON
Source: New York Times & Arner, BI
FINTECH IN INDONESIA

Joint Venture
Conventiona Independent
Financial
Fintech l Financial Fintech Fintech technology
Institutions &
Institutions 2.5 company
2.0 Tech 3.0
[Bank] [Startup]
Company

Indonesias fintech today are growing to fintech 3.0, where many independent
tech companies (startup) joining the financial market.
Because many new players are emerging, Indonesias Fintech Association then
established in September 2015.
The vision is to be a reliable partner to realize Indonesias fintech ecosystem,
from Indonesia companies for Indonesia people.
FINTECH PLAYER GROWTH
With the fast pace development of Indonesias tech
ecosystem, fintech sector also feel the impact and
2015-2016 was the best year for fintech industrys growth in 78%
Indonesia so far.
According to Indonesias Fintech Association, the growth of
fintech players detected for the past two years reach 78%,
the highest number so far

7% 9%
6%

2006-2010 2011-2012 2013-2014 2015-2016

Source: Indonesias Fintech Association


NUMBER OF FINTECH PLAYERS
IN INDONESIA

135-140 By November 2016, Indonesia Fintech Association


(IFA) has listed Around 135-140 fintech players.

By November 2016, there are 55 fintech players

55 registered as a full member of the association.


41 fintech 3.0 and 14 fintech 2.0

Source: Indonesias Fintech


FINTECH PLAYER PROFILE BY SECTOR
Based on IFA data,
Others
43% of the fintech 11%

players in Indonesia
Crowdfunding
are playing in 8%

payment sector, from


mobile payment to Personal Finance Payment
Planning 43%
payment gateway 8%

company. Lending
17%
E-commerce growth
plays major part for Agregator
13%
this condition

Source: Indonesias Fintech Association


INDONESIA FINTECH PLAYER
Source: Indonesias Fintech Association, Crunchbase, DailySocial, Tech in Asia

Group Indonesia Fintech Player

Account Aggregator Veryfund

Agent Network Ruma

Asset Management Fidigo

Banking Support Kanopi

Capital Market Stockbit


INDONESIA FINTECH PLAYER
Source: Indonesias Fintech Association, Crunchbase, DailySocial, Tech in Asia
INDONESIA FINTECH PLAYER
Source: Indonesias Fintech Association, Crunchbase, DailySocial, Tech in Asia

Group Indonesia Fintech Player

Payment
INDONESIA FINTECH PLAYER
Source: Indonesias Fintech Association, Crunchbase, DailySocial, Tech in Asia
FINTECH INVESTMENT OVERVIEW
In 2016, many fintech startups emerged in Indonesia. The growth
reaches 78% per IFA data.

Approximately 12 local capital owners invested in fintech startups


and it includes funding to fintech startup outside Indonesia.

On the other side, approximately 20 foreign investor firms


invested to fintech startup companies, either local or foreign
startup which want to expand its market.

Furthermore, we listed 4 angel investors invested to local fintech


startup and one IPO funding.
DISCLOSED AMOUNT OF FUNDING

While most startups and capital owners choose not to


disclose the number, we found out that the total
disclosed amount of funding in 2016 for fintech startups
has reached around Rp 486.3 billion.

The investment number include IPO funding and funding


from parent company outside Indonesia.
FINTECH STARTUP FUNDING LIST (1)
Source: Crunchbase, DailySocial, Tech in Asia
FINTECH STARTUP FUNDING LIST (2)
Source: Crunchbase, DailySocial, Tech in Asia

Startup Series Capital Investor Others


Local: East Ventures,
Convergence Ventures
Series A Rp25,8 Billion
Foreigner: Wavemaker
Partners, Northstar Group
Local: East Ventures
Seed Undisclosed Expand to ID: 2016
Foreigner: 500 Startups
Local: East Ventures
Seed Undisclosed
Foreigner:
Fund went to
Local: Alpha JWC Ventures
Funding Societies;
Series A Rp100 Billion Foreigner: Sequoia India,
parent company
Harvard
Modalku
Local:
Undisclosed Rp201,6 Billion
Foreigner: European Funds
FINTECH STARTUP FUNDING LIST (3)
Source: Crunchbase, DailySocial, Tech in Asia
FINTECH STARTUP FUNDING LIST (4)
Source: Crunchbase, DailySocial, Tech in Asia
LIST OF LOCAL INVESTOR
8
With eight investment activities in 2016,
East Ventures is the most active local
venture capital who pour funds into fintech
startups in Indonesia.

2 2
1 1 1 1 1
LIST OF FOREIGN INVESTOR

On the other side, 500 Startups is the most active

foreign VCin Indonesias fintech ecosystem, with 3

investments this year.

The portfolio are: iGrow, finAccel (Kredivo), and Kudo.

The others VCs:

Jungle Ventures, Wavemaker Partners, Northstar Group,

Sequoia India, European Funds, Beenos Plaza, Singapore Press

Holdings, IMJ Investment Partners, Fenox Venture Capital,

Golden Gate Ventures, Telstra Ventures, Jasrag Investments,

Altitude Partners, Captii Ventures, Monks Hill Ventures,

Perle Ventures, tryb Capital, Aura Funds Management, 2W Group,

Azmi Global, Quest Ventures


INVESTMENT TO FOREIGN FINTECH
STARTUP INVOLVING LOCAL INVESTOR
Local Investor Others Startup Series Capital

GMO Investment Partners Jepang,


MDI Ventures Wavemaker Partners, & Co-Founder Red Dot Payment Undisclosed Undisclosed
Skype Toivo Annus

SBI Investment, Golden Gate


SMDV Omise Seri B $17,5 Million
Ventures, Ascend Money

Nullabor, Anfield Equities, NTT


Celebes Capital DOCOMO Ventures, Tuas Capital Jirnexu Seri A $3 Million
Partners, Steve Melhuish, DMP VC

Lippo Group - Call Levels Seed Undisclosed

Source: Crunchbase, DailySocial, Tech in Asia


ANGEL / INDIVIDUAL INVOLVED IN
INDONESIAS FINTECH STARTUP
INVESTMENT ROUND

Amar Goel: Chairman of the Board of Directors at PubMatic

Jerry Yeu: Investment Director at Hawksburn Capital

Mathieu Harding: Director at Hawksburn Capital

Prashant Kirtane: Vice President (Asia) at HomeAway


NO LOCAL ANGEL THIS YEAR
Unfortunately, no (disclosed) local angel investors
involved in fintech sector this year. In 2015, we
recognized ANGIN (Angel Investor Club) had made
investment into two fintech players, Taralite and
Kitabisa.
POOLED FUND IN 2016
Investor Name Capital

Kejora Group Rp 1,08 Trillion

500 Startup SEA Rp 650 Billion

Rp 5,2 - Rp6,5 Billion / startup


KK Fund
[$400-$500,000]

Gobi Partner & MAVCAP Rp 188,5 Billion

MDI Ventures Rp 300 Billion

Mandiri Capital Rp 200 Billion

Unitus Impact Rp 600 Billion

Golden Gate Ventures Rp 800 Billion


CONSUMER AWARENESS SURVEY
ON FINTECH

To have better understanding on consumer awareness on


fintech, weve conducted a survey using the JakPat
platform.

1000 respondents are involved, with 51.05% are Female


and 48.95% are Male.
RESPONDENTS RESIDENCY
East Java
20.31%
Jakarta
35.08%

Central Java
15.91%

West Java
28.70%

85.18% respondents lives in Java


> 45 y/o <16 y/o
0.20% 0.00%
RESPONDENTS
40-45 y/o
2.90% 16-19 y/o
AGE 2.70%

36-39 y/o
6.01%
From Age point of
view, most
respondents are the
millennial generation 30-35 y/o
21.92% 20-25 y/o
with 20-25 age 43.34%

group as the
majority (43.34%)
26-29 y/o
22.92%
FINANCIAL ACCESS TO BANK /
HAVING BANK ACCOUNT
Since majority of
No
respondents live in Java 13.07%

and in an urban area,


86.93% of them have
access to financial
Yes
activities or have bank 86.93%
account.
HAVE YOU EVER HEARD FINTECH?

Yes
28.34%

No
71.66%

71.66% think that Fintech is an unknown word.


WHAT DO YOU KNOW ABOUT FINTECH?
For those who know or ever
heard of the word fintech,
18.86% 36.13% of them defined it as

36.13% Financial service to empowering


technology.
20.06%
20.06% of the respondents
associate it with the tech startup
24.95%
who focusing the services on
financial sector.

Financial services empowered by technology

A phenomenon between tech and financial that transforming traditional financial business model

Startup technology in the financial sector

Other
DO YOU USE FINTECH SERVICE RIGHT NOW?

Yes
18.46%

No
81.54%

Only 18.46% respondents in this survey said they


already used a fintech service.
WHICH SERVICE DO YOU USE?

For those who use the Both at the


same time
fintech services, 81.08% 8.65%
said they use fintech Non-Bank
10.27%
services owned by bank.
10.27% used Non-bank
fintech services, 8.65%
use both.
Owned by Bank
81.08%
POPULAR NON-BANK FINTECH SERVICE
42.86%
When it comes to popularity, Doku stands out as the most
popular fintech player among the respondents with 42.86%.

17.14%

11.43% 11.43% 11.43%


8.57% 8.57%
5.71% 5.71%
2.86% 2.86% 2.86%
TOP REASON FOR USING FINTECH SERVICES
For the respondents in this survey, the top reason to use
fintech services is that its easy to use with 71.35%.
Followed by no need to come to bank,
71.35%
saving time, and more secure.

47.03% 49.19%
36.22%

21.62%
11.89%
3.24%

Others Higher return To manage More secure Saving time No need to Easy to use
than banking finances and practical come to the
product better bank
DO YOU THINK FINTECH CAN PUSH BETTER
FINANCIAL LITERACY AND FINANCIAL
INCLUSION IN INDONESIA?

74.47% respondents
believe that fintech can No
25.53%
help pushing the idea of
better financial literacy and
financial inclusion in Yes
74.47%
Indonesia.
THE CHALLENGE

Based on survey by Deloitte Consulting and Asosiasi


Fintech Indonesia (2016), fintech players in Indonesia
feel that Indonesias fintech sector:
(a) need a clearer regulation,
(b) have more collaboration,
(c) lack of talents, and
(d) struggle with financial literacy.
REGULATION (1)
Payment Gateway 60.90%

E-Money or E-Wallet 58%

Know Your Client 56.50%

P2P/ Online Lending 56.50%

Digital Signature 53.60%

Data Security 49.30%

Selling Financial Product 46.40%

Cloud Service 26.10%

Others 2.90%

Based on data gathered by Deloitte Consulting and Asosiasi FinTech Indonesia, area with the highest

demand for increased or clearer regulation are Payment Gateway (60.90%), e-money/e-wallet (58%),

and KYC (56.50%)


REGULATION (2)
Based on survey by Deloitte Consulting and Asosiasi

Fintech Indonesia (2016), almost half of fintech

players (49%) feel that current regulatory process is

slow and 61% of them feel that regulation in

Indonesia today is not so clear or in grey area.


REGULATORS
The lack of the clearer regulation has been responded by Indonesia government
and they promise by the end of the year there will be clearer regulation for
fintech.

Basically, there are three institution which have authorities to make the
regulation for fintech:

Financial Service Autorities Ministry of Communication and


Bank Indonesia (BI)
(OJK) Informatics

Processing payment Data Security Data Security


transactions and wallet / Digital KYC Digital Signature
electronic money Digital Signature Consumer Protection
Data Security Online lending Regulation Basically default issue in tech
Financial System Stability (SSK) Consumer Protection company
Monetary Basically, every financial etc
Consumer Protection activities related to non-banking
Basically, every regulation institution
related to banking Etc
Etc
IN SHORT

OJK BI
FinTech 2.0 (digital banking,
InsurTech, FinTech in capital Card based Payment Instrument

markets, venture capital, and (APMK), E-Money, Money Telco,

online financing) Blockchain (Bitcoin)

FinTech 3.0 (independent


technology companies and National Payment Gateway
startups) (NPG)

Source: DailySocial News


REGULATORS
OJK outlines two fintech classification that will fit into OJK

supervision. Both will have to comply with any rule made by the OJK

and by the end of the year OJK plans the regulations (POJK) for

fintech.

The two fintech categories:

Fintech 2.0 & Digital Banking. Encompasses three areas: banking,

capital markets, and non-bank financial industry (IKNB).

Fintech 3.0-3.5, startup companies: Specialized set of non financial

services institutions (LJK).

Source: DailySocial News


FINTECH CATEGORIES

FinTech 2.0: Banking: E-banking, Financial Services in the Office Without

digital banking, Inclusive Financial Framework (Smart Code), Digital Branch,


InsurTech, FinTech in and Banking Anywhere (Omni channel).
capital markets, venture Capital market: E-stocks, Bonds, Mutual Funds, and Trading
capital, and online
IKNB: E-Pawn, E-MFIs, E-Guarantee, and E-Insurance
financing


FinTech 3.0:
Cooperative, Futures Exchanges, and loan-based
independent technology
crowdfunding (P2P Lending)
companies and startups

Source: DailySocial News


BANK INDONESIA
Bank indonesia will regulate card based payment tool
(apmk), e-money, money telco, blockchain (bitcoin), and
the national payment gateway (npg).

Furthermore, BI has launch two initiatives:


Bi fintech office (bi-fto) which implements the regulatory
sandbox.

Regulation regarding the implementation of the payment


transaction processing (pbi ptp).

Source: DailySocial News


REGULATION / INITIATIVES, IN SHORT (1)

Launch POJK by the end of the 2016

Mainly will regulate fintech lending and

OJK payment (P2P lending, etc)

Also data security, consumer

protection, etc
REGULATION / INITIATIVES, IN SHORT (2)

Launch BI FTO with regulatory sandbox initiative.


With sandbox, not all of the fintech player can join BI-FTO. It will
play the role as laboratory to test the business model and
product before enters into a full licensing regime.
Restrictions are given in the form of limited licensing to the
service, time period, or holding area.
PBI PTP regulate ownership structure of service providers and had

BI two subjects:
Payment system service providers: the parties responsible for
the stages of the authorization, clearing, and settlement like
switching providers, payment gateways, and electronic wallets
are required to have license from BI
The parties that support payment transactions such as card
providers, ATM, EDC, and data center
Also regulate the minimum fintech ownership , which is 80%
owned by the person or legal entity locally.
TALENTS NEEDED
As companies grow,
their need of talents 90%
will change. > 4 y/o Companies

Younger company
have greater need
for Data and
3 y/o Companies 67%
Analytics talents,
but companies that
have been
operational for 0-2 y/o Companies
longer duration 83%
have greater need
in Risk
Management Risk Management Back end Programming Data and Analytics
talents.

Source: Deloitte Survey 2016


While in 2016 Indonesia experience fast growth of fintech
ecosystem, theres a challenge in the regulation.

Most fintech players feel that the regulation in Indonesia still


in grey area. Theyve requested the authorities to create
clearer regulation. What this sector needed most is Payment
Gateway.

The authorities responded well. OJK will launch POJK which


will be focusing on regulating the fintech payment and
lending sector. BI already launch two initiatives, BI-Fintech
Office and PBI PTP.
At least 19 investment activities in fintech sector in Indonesia

East Ventures is the most active local ventures in fintech area.


500 Startups is the most active for foreign VC.

Total amount of disclosed investment in 2016 reaches


Rp 486.3 billion.

Consumer awareness to fintech services is still low although most


live in urban area.

Yet most of them believe that fintech can help to push on better
financial literacy and financial inclusion in Indonesia.

Doku is the most popular fintech startup in Indonesia, according


to respondents.
More info visit: thnkply.com
CFREE SURVEY TO 100 PANEL! CLICK HERE
Get Real-time Insight from Indonesia Mobile Panel

Вам также может понравиться