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Indonesia Digital Economy

Poised for growth

Batara Sianturi, CEO, Citi Indonesia

In an interview with Global Platform, Batara Sianturi, CEO of Citi Indonesia, discusses how Indonesia’s banking sector is adapting to the digital economy and the proliferation of financial technology (fintech). The country’s banks are poised to build off of strong performance in the next, technology-driven stage. Small and medium-sized enterprises are set to play a central role in this next phase, propelled by a supportive entrepreneurial ecosystem.

Fintech
Report Analysis

How Indonesian fintech companies are boosting financial inclusion

Indonesia’s financial technology (fintech) sector is one of the most dynamic and competitive in the world, as evidenced by the emergence of four unicorn companies – start-ups valued at over $1bn – and one decacorn, valued at over $10bn. These new tech giants include one digital payment firm, OVO, while the

Report Interview

Reynold Wijaya, CEO and Co-Founder, Modalku: Interview

Blockchain related technologies, if utilised properly, will help enhance access to financial services by enabling transparent and accurate banking transactions. These will serve as a source of legitimate underwriting, particularly for underbanked and underserved segments of the population. However, despite
Report Overview

How cashless transactions support fintech growth in Indonesia

The role of cash is declining in Indonesia, due in large part to the significant growth of online payment choices. This comes as the Covid-19 pandemic has encouraged more people around the world to opt for cashless transactions to limit the spread of the virus, a trend that may continue to boost cashless transactions in
Report Interview

Vincent Iswara, CEO, DANA: Interview

At the moment there are more than 100 registered and licensed peer-to-peer lending companies operating across the country. They have an important role to play in creating a financially inclusive society, which is one of President Joko Widodo’s key aims. Approximately 170m out of 260m people already have internet and data access, but 75% are either unbanked or underbanked because many people who
Report Analysis

What is boosting bancassurance sales in Indonesia?

Bancassurance has emerged as a high-growth segment for insurance sales in recent years, as banks seek new revenue sources and diversification of their customer portfolios. In January 2019 the Indonesia Life Insurance Association (AAJI) forecast that total life insurance premium generated through the
ESG

Report: The evolution of ESG in paint production in Indonesia

Investors, regulators and consumers around the globe are increasing their focus on environmental, social and governance (ESG) principles as they seek products and services that protect the environment, mitigate social risk and offer positive returns for stakeholders. Indonesia has embedded ESG-related development goals into its medium- and long-term development agendas – and into its investment ecosystem – as it pursues the UN’s Sustainable Development Goals (SDGs). At the same time, private sector companies are taking steps that are helping to drive the country's ESG agenda.

How Indonesian fintech companies are boosting financial inclusion
Reynold Wijaya, CEO and Co-Founder, Modalku: Interview
How cashless transactions support fintech growth in Indonesia
Vincent Iswara, CEO, DANA: Interview
What is boosting bancassurance sales in Indonesia?
Report: The evolution of ESG in paint production in Indonesia
 
June 30, 2021

Report: How important will Indonesia’s digital economy be for long-term, inclusive growth?

Indonesia’s economy experienced a milder slowdown in 2020 than its ASEAN-5 neighbours, according the IMF’s April 2021 World Economic Outlook, and also fared better than 16 other G20 members.

Healthtech

Economic View

Fathema Djan Rachmat, President Director, Pertamedika IHC

Covid-19 is a health crisis like no country has experienced before, and for which no country had a well-established mitigation or response plan – including Indonesia. We first aimed to understand the behaviour of the virus and then promptly develop strategies to prevent its spread, while also identifying effective solutions for patients. Collaboration was key in enabling us to overcome the challenges we faced throughout the process.

Covid-19 Response Report

Report: How did telemedicine enhance Indonesia’s response to Covid-19?

Indonesia was in the process of rolling out its Universal Health Care system prior to Covid-19, but disparities in service provision and accessibility remained between different regions. This report looks at how telemedicine and digital services can bridge health care gaps, with a particular focus on how telemedicine firms boosted the response to Covid-19 and the likely long-term implications for growth in this segment.

Report Interview

Jonathan Sudharta, Founder, Halodoc: Interview

The Covid-19 pandemic is a matter of immediate national and international concern, and poses perhaps the greatest challenge that we have faced as a nation. In light of the need for social distancing, the dissemination of accurate information and proper health care education could prevent Covid-19 from being spread to millions of Indonesians.

Economic News

How Indonesia’s med-tech and ed-tech firms are responding to Covid-19
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espite its close proximity and trade ties to China, where the outbreak began in December 2019, Indonesia did not report its first two confirmed cases until March 3. As such, travel and leisure activities continued largely as normal through much of the first quarter, although several restrictive measures were gradually imposed, including the one-month suspension of the visa-exemption policy for all countries starting March 20.

Economic View

Nathanael Faibis, Founder, Alodokter

With hospitals operating above capacity, the government wants to ensure that only priority patients visit emergency rooms; patients who do not urgently need hospitalisation can be helped through online services. We saw 32m website visitors in March 2020 alone, and since Indonesia’s first confirmed case, our doctors have undertaken over 500,000 free consultations for patients who suspect that they may have the virus and for those who exhibit mild symptoms.

Economic News

E-commerce provides economic boost for Indonesia as shoppers migrate online during the Covid-19 pandemic
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Compared to neighbouring Malaysia and Singapore, the Indonesian government had been reluctant to implement strict quarantine procedures due to fears over the economic and social impact. However, a partial two-week lockdown was imposed on the capital Jakarta from April 10, involving the closure of offices, a ban on gatherings of more than five people, reduced operational hours for public transport and an end to in-restaurant dining.

Infrastructure and Legislation
Report Viewpoint

Subianto, Partner and Digital Services Co-Leader, PwC Indonesia: Viewpoint

Indonesia has a young and vibrant population that is also tech savvy, energetic and full of new business ideas. Indonesia has become well known in South-east Asia for the frequency at which we produce new tech unicorns – start-ups valued at $1bn and above – and other dynamic business enterprises. Indeed, an

Report Analysis

How is Indonesia developing its digital economy?

Indonesia is the largest economy in South-east Asia, the world’s fourth-most-populous nation, the 10th-largest economy in terms of purchasing power parity and a member of the G20. PwC’s “World in 2050” report predicted that, by 2050, Indonesia will be the fourth-largest economy in the world. However, President
Report Analysis

Expanding e-governance and e-commerce in Indonesia

Indonesia’s ranking on the ease of doing business index in the World Bank’s “Doing Business 2020” report remained at 73rd of 190 countries, the same position as one year prior. The introduction of various regulations and policies that were designed to be friendly to investors apparently have not succeeded in boosting
Report Interview

Johnny Plate, Minister of Communication and Information Technology: Interview

Speed of service is key to bureaucratic reform, and we are applying ICT solutions for government tasks. We are heavily focused on creating an ecosystem where bureaucracy is supportive of the growth of the digital economy. As of 2020
Report Analysis

Is demand for Indonesia's digital economy growing?

The vibrancy of Indonesia’s digital economy is evident in the ubiquity of the green-uniformed Gojek and Grab delivery drivers navigating via mobile device through the streets of its major cities. Indonesia has the largest and fastest-growing ICT market in South-east Asia and presents an enticing opportunity for investors
Report Analysis

Which service providers are in Indonesia's cloud market?

Indonesia’s data centre market is flourishing as global cloud solutions providers race to take advantage of the country’s booming digital economy. Financial benefits from using public cloud services could add as much as $36bn to Indonesia’s economy between 2019 and 2023.
Report Analysis

How is Indonesia preparing for 5G rollout?

In keeping with its position as the largest economy in ASEAN, Indonesia is expected to eventually capture the largest share of rising consumer and enterprise revenues as a result of 5G deployment. A study by global management consulting firm Kearney suggests that the technology could lift consumer revenue across the

Subianto, Partner and Digital Services Co-Leader, PwC Indonesia: Viewpoint
Indonesia 2019 - Fintech
How is Indonesia developing its digital economy?
Expanding e-governance and e-commerce in Indonesia
Johnny Plate, Minister of Communication and Information Technology: Interview
Is demand for Indonesia's digital economy growing?
Which service providers are in Indonesia's cloud market?
How is Indonesia preparing for 5G rollout?
 

Across Indonesia's Economy
Report Interview

Ming Maa, President, Grab: Interview

The South-east Asian digital economy is expected to grow three-fold to $300bn by 2025. For the digital economy to reach its potential, regional cross-border data flows are essential. The ability of data to flow freely across borders will enable regional tech companies such as ours to disperse the benefits of their technologies across the region. This, in turn, promotes competition and ensures
Report Overview

E-commerce opportunities in Indonesia's retail market

Indonesia’s large and relatively young population, coupled with a fast-growing middle class and high levels of consumer confidence, has been a key driver of expansion in retail and e-commerce. Physical retail spaces remain prevalent, with new malls opening across the country in 2019. Despite the sector’s positive

Report Interview

Muhamad Fajrin Rasyid, Co-Founder, Bukalapak: Interview

E-commerce in Indonesia witnessed 300% growth since 2017 and is projected to expand seven-fold through to 2023. The segment’s potential far exceeds most other industries, particularly in fashion, food and electronics. Interestingly, small and medium-sized enterprises (SMEs) are leading partners of e-commerce
Report Analysis

Is the heightened demand for e-commerce in the Philippines here to stay?

In an effort to promote social distancing and restrict the movement of people during the Covid-19 pandemic, retailers selling hardware, clothing and electronics were mandated to close during the Philippines’ strictest lockdown phase.

Report Analysis

Can Indonesian travel agencies attract the middle class?

With an internet adoption rate of 64.8% as of 2018 and a widening middle class, online travel agencies (OTAs) have become increasingly popular in Indonesia in recent years. OTAs do not require the same level of infrastructure, staff and working capital as traditional travel agencies, and the convenience they provide to

Report Overview

How technology can help small-scale farmers in Indonesia

With millions of hectares of arable land across over 17,000 islands, Indonesia’s agriculture sector has long been an integral part of its economy. While its contribution to GDP may have declined in recent years – a result of the growth of other industries amid economic diversification – it remains hugely important
Economic News

Covid-19 and augmented reality: is Indonesia poised for a boom?

AR – a technology often closely associated with virtual reality (VR) and artificial intelligence (AI) – integrates digital information into a real-time, physical environment. Unlike VR, which involves total immersion in a digital environment, AR typically takes the form of images or graphics superimposed on reality via a

Ming Maa, President, Grab: Interview
Oman Retail
E-commerce opportunities in Indonesia's retail market
Muhamad Fajrin Rasyid, Co-Founder, Bukalapak: Interview
Is the heightened demand for e-commerce in the Philippines here to stay?
Can Indonesian travel agencies attract the middle class?
How technology can help small-scale farmers in Indonesia
Covid-19 and augmented reality: is Indonesia poised for a boom?
 

Regional Innovation
Economic News

Will South-east Asia’s tech giants turn to SPACs to boost post-pandemic growth?

South-east Asia is seeing a wave of interest in special purpose acquisition companies, or SPACs, with various major tech players considering them as a means to fast-track public listings. In parallel to this, several exchanges in the region are moving to allow SPAC listings, with a view to boosting post-coronavirus
Economic News

Disrupted by Covid-19, will South-east Asia's super apps join forces?

After a year of external expansion and internal reorganisation due to Covid-19, South-east Asia’s super apps appear to be looking towards mergers and public listings as a strategy for future development. In early January international media reported that Indonesian ride-hailing and payments giant Gojek was in advanced
Economic News

How is Covid-19 changing South-east Asia’s super apps?

In recent years so-called super apps – online or mobile platforms that combine multiple services into one app – have sought to continuously expand their offerings. While many started off with one core business, such as online messaging, ride-hailing or digital payments, they have expanded into increasingly

Economic News

Despite Covid-19, South-east Asian investors prepare for a flurry of IPOs

The onset of Covid-19 gave rise to a dramatic, worldwide decline in IPOs, with April and May registering a 48% decrease in volume and a 67% drop in proceeds compared to the same period last year. IPO activity in June remained muted in the Americas, Europe, the Middle East and Africa. However, listings increased in Asia
Economic View

Michael Gorriz, Group Chief Information Officer, Standard Chartered

In Africa, where Standard Chartered opened eight digital banks in 2018-19, the cost to serve is a crucial determining factor when offering banking services. A large part of the continent is underbanked primarily because the cost to serve in Africa is quite high within traditional banking networks, so digital solutions provide

Report Analysis

Indonesia's tech start-ups' role in the economy

The innovative tech scene in South-east Asia has garnered international attention. A jolt occurred in the international tech industry in early 2018, when the Singapore-based ride-hailing app Grab announced that it would take control of the Southeast Asian operations of its US-based competitor, and global first-mover, Uber.
Energy

Case study: ESG, energy transition and Indonesia

Indonesia’s environmental, social and governance (ESG) priorities centre on the affordable transition to renewable energy, socio-economic growth beyond Jakarta, and improved governance in both the public and private sector.

Will South-east Asia’s tech giants turn to SPACs to boost post-pandemic growth?
Disrupted by Covid-19, will South-east Asia's super apps join forces?
How is Covid-19 changing South-east Asia’s super apps?
Despite Covid-19, South-east Asian investors prepare for a flurry of IPOs
Michael Gorriz, Group Chief Information Officer, Standard Chartered
Indonesia's tech start-ups' role in the economy
Case study: ESG, energy transition and Indonesia
 

Global Pandemic Disruption

Economic Update

Covid-19 and cyberattacks: which emerging markets and sectors are most at risk?
OBG
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The coronavirus pandemic has helped drive the rapid growth of digital solutions. While this has enabled a number of positive developments, it has also exposed many sectors to a heightened threat of cyberattacks. As lockdowns and curfews were introduced around the world to stop the spread of Covid-19, various aspects of daily life shifted online.

Economic Update

ICT Sector Year in Review 2020
OBG
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The shifting of daily life online has been one of the most far-reaching consequences of the coronavirus pandemic. While it is not without its challenges, broad-based digitalisation has helped governments around the world to combat Covid-19, as well as created new growth opportunities for private companies. A widely shared meme repeats the same image of a person sitting in front of a computer under a series of different headings: working, studying, watching TV, socialising and so on. For many, indeed, this has been the reality of 2020.

Economic Update

The new ABCD of global finance, and what it means for emerging markets
OBG
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One outcome of the coronavirus pandemic has been a massive acceleration of the digital transformation process. Nowhere is this more evident than in the finance industry, where Covid-19 prompted a complete overhaul of legacy processing systems and the widespread implementation of what are known as ABCD technologies – a catch-all term that encompasses artificial intelligence (AI) and automation, blockchain and bitcoin, cloud computing, and digital and data-driven solutions.

Report Analysis

Digital currency pushes banks to address technology-based risk

The first cryptocurrency transaction in history was feted in just two words: “Running Bitcoin”, which came in the form of a tweet on January 11, 2009 by Hal Finney, a US software developer. Some 10 years and over 1600 initial coin offerings later, the world of crypto-, virtual and other digital currencies looks to have provoked an active response from financial sector leaders.

Report Interview

Marc Carrel-Billiard, Global Senior Managing Director and Technology Innovation Lead, Accenture Labs: Interview

Business as usual is no longer an option. The digital gap widened with the outbreak of Covid-19, and companies are having to accelerate to higher levels of digitalisation to serve different customer expectations, adapt to health challenges and pivot to new growth opportunities. One area where this is especially apparent is cloud computing. Companies need speed, predictable outcomes and holistic value; the cloud is fundamental to their growth and success. The urgency to innovate is so great that most companies need to move their business from 20% in the cloud in 2020 to 80% by 2023.

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