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How is the fintech market developing in Indonesia?

The fintech market started with digital payments, and now includes a huge number of services and financial products. Read on to see how the fintech market in Indonesia is developing.

The Indonesian government is actively supporting financial technology innovation. A large number of digital platforms and payment services are actively emerging in the country. Fintech companies are strictly regulated by the local authority, the Financial Services Authority (OJK), thus protecting user data, terrorist financing and preventing money laundering. All this creates a favorable environment for attracting investors from all over the world. Here are examples of Indonesian startups that have become “unicorns” – worth over a billion dollars:

Gojek is a $ 10 billion payment and logistics startup that has giants such as Facebook, PayPal, Google.

-Tokopedia is a $ 7 billion e-commerce startup invested by Alibaba Group, SoftBankGroup, and others. It was founded in 2009 by William Tanuwijaya and Leontinus Alpha Edison. It is an Indonesian unicorn along with ride-hailing company Gojek, travel service firm Traveloka, e-commerce company Bukalapak and fintech company OVO.

As with any country, the 2020 pandemic has heightened the need for digitalization in Indonesia. The need for payment services, online banking and other digital services has created huge competition for the role of financial leader in the local market.

Today, 322 fintech companies are officially registered and operate in Indonesia. And here is some statistic

– 50% of them do online crediting,

– 30% payment and investment services,

– 10% blockchain and cryptocurrency,

– 10% other activities.

Usage of artificial intelligence algorithms started to be a trend in online crediting, especially for p2p lending. P2P volume in 2020 has grown by as much as four times compared to last year. Now the total share of alternative lending is $ 7.7 billion. It is the most important tool for supporting small and medium-sized businesses. According to the Central Bank of Indonesia, a third of companies prefer non-banking services when applying for a loan. This phenomenon is explained by the very weak development of the banking sector in the country and liberal laws supporting the development of financial technologies.

One of the first p2p lending services to receive an official license from OJK is UangTeman. UangTeman is an online lending service that provides instant short-term microcredit to Indonesian consumers. It aims to provide online financing, anywhere and anytime as an alternative to conventional lending models of banks or other finance companies. The startup has already been included in the list of the most promising and fastest growing financial companies in Indonesia. Having received a license in their country, they decided to expand towards the Philippines, and negotiations are already underway to obtain a local license.

The second such rapidly growing service is Investree, which managed to attract $ 24 million in investments for expansion towards the same Philippines and Thailand.

An interesting project can also be called a startup Pluang, which attracts funds for investment in companies that produce goods and services according to Sharia law. Indonesia is the largest Muslim country, therefore, compliance with the principles of Islam has a certain relevance and distinguishes a startup from the general list.

Financial technologies increase the availability and efficiency of receiving financial services by the population and business, increase the competitiveness of the business and, as a result, its profitability. I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.

Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.


Please write me an email with your specific case or book a Skype call, my team and I will be more than happy to help you to find the best solution for your business need or to advice and support you to start the new business venture.

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