Investor Presentaiton
Digital Transformation
Fintech offers a route to trustworthy access to credit,
particularly for unbanked MSMEs
Financial services authority (OJK) regulations to
boost the national fintech ecosystem, 2016-18
P2P lending
OJK Regulation No. 77/POJK.01/2016
MSMEs must be at least 15% Indonesian-owned, obtain a licence from
the OJK and acquire credit guarantees from insurance firms
Regulatory sandbox
OJK Regulation No. 13/POJK.02/2018
Requires fintechs to undergo a one-year sandboxing period,
extendible up to six months, under OJK supervision
ICT-based stock crowdfunding
OJK Regulation No. 37/POJK.04/2018
MSMEs can raise funds from retail investors through equity
crowdfunding using online platforms
Indonesia's MSMEs offer considerable
growth opportunities for financial services
Economic and financial relevance of MSMEs
(% of total)
Updated by Bank
Indonesia (BI) in April
2021 with regulatory
sandbox 2.0, which
comprises an innovation
lab, engineered to test
new payment
innovations; an industrial
sandbox, to promote
existing innovation; and
a regulatory sandbox for
innovation in payment
policies.
Peer-to-peer (P2P) lending and payment providers
dominate Indonesia's fintech market, April 2020
P2P lending
Others
20
Payment
Digital finance innovation Wealth management
୮ Г.
୮
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44%
18%
516% 54%
40
60
80
18%
364
fintech
players
100
Digital banking transactions in Indonesia accounted for around 83% of total
transactions by number as of end-December 2020: 16% were performed at ATMs
and 1% at branches.
Indonesia's MSMEs in
numbers
116.7m workers as of
2017
Rp1086.5trn in loans
The number of P2P lending fintech and borrowers
has soared since OJK issued Regulation (POJK)
No. 77/POJK.01/2016
20,000,000
Lenders
Borrowers
15,000,000
100%
Workforce at
80%
as of June 2018
MSMEs
60%
14.3m bank accounts as
Outstanding credit
40%
of September 2017
accessed by
20%
MSMEs
51% of small enterprises and 34%
10,000,000
MSMEs with
of medium-sized enterprises are
owned by women
a bank
account
9.1% of GDP contributed by
female-owned SMEs
5,000,000
Access and trust
Bank Indonesia took steps to
expand digital financial inclusion
during the pandemic, including
strengthened collaboration
with fintech players. Indonesia's
fintech ecosystem comprised 364
players as of April 2020. Primarily
providing P2P lending and payment
solutions, these could be key in
facilitating access to credit for
MSMEs. MSMEs account for the vast
majority of employment - with around
half of small enterprises owned by
women - and yet they remain
overwhelmingly unbanked.
The OJK aims to build trust in the
fintech ecosystem: with respect to
wider and safer access to finance for
MSMEs, regulations include
transparency in P2P lending and a
sandbox to nurture innovation.
PwC
OBG ESG Report
о
OXFORD
BUSINESS
GROUP
0
2016
2017
2018
2019
Sources: BCA; BI; Google, Temasek and Bain & Company; ICLG; IFC; McKinsey; OJK; PwC
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