The document discusses the technology and financial technology landscape in Indonesia. It notes that Indonesia has a large young population and growing middle class that is increasingly using the internet and engaging in online activities. However, connectivity, logistics, payments and other infrastructure issues still constrain internet business growth in Indonesia. The document advocates that financial technology can help enable innovation, banking the unbanked, lending, payments, and other services to tap into Indonesia's economic opportunities. It announces the soft launch of a FinTech advocacy group in Indonesia to help drive such innovation.

1. INDONESIA
TECH
LANDSCAPE ____________________
Do you want to pet
the tiger?
Andy Zain
@andyzain

2. Everybody’s
talking
about
them
100
Million
Dollars

3. Congratula1ons!

4. v

5. It
is
s1ll
early!
Per capita GDP and Internet penetration percentage
Developed
Market
20%
of
retail
shopping
is
online
Emerging
Market
Less
than
1%
of
retail
shopping
is
online

6. Indonesia’s
demographic
bonus.
Millions
of
young
people
joining
the
middle
class,
going
online
and
beginning
to
save
and
consume.
$ 565 bio
Forecasted
size
of
savings
and
investment
market
in
2030
50 %
Percentage
of
populaEon
under
30
years
of
age
6
80 mil
Internet
users
55 mil
Consumers
joining
middle
class
35 %
Growth
in
mortgage
lending
26 %
Growth
in
consumer
lending
24 %
Growth
in
insurance
premiums
22 %
Growth
in
Credit
card
transacEon
value

7. Macro story: technology-enabled society evolving from “push” to “pull” with
the individual dictating what, when, where and how.
PUSH PULL
Before E commerce After E Commerce

8. GROWTH
CONSTRAINTS
FOR
INTERNET
BUSINESS
IN
INDONESIA
Conne c t i v i t y L o g i s t i c s , Huma n
C a p i t a l , a n d L a s t Mi l e Payment s
S t ruc tur a l Root I s sue s…
P a p e r - b a s e d
s y s t e m s
L a c k o f
i n f r a s t r u c t u r e
A n t i q u a t e d
r e g u l a t i o n
L o w T r u s t
P o o r
c o n s ume r
p r o t e c t i o n
P o o r n a t i o n a l
e d u c a t i o n
s t a n d a r d s

9. But
the
winds
of
change
are
blowing…
9
I C T M i n i s t r y I n i t i at i ves e S e r v i c e s
B u s i n e s s - f r i e n d l y,
f r o m o u r i n d u s t r y,
o p e n t o i n n ov a t i o n
Mobi le Payment
eVo t i n g, eTa x ,
eAp p l i c a t i o n s ,
e H e a l t h

10. #SUPERCARD
1,000,000
families
to
get
Cash
Aid
USD
20/month
Distributed
via
Mobile
SIM
Card!

11. Financial
Technology
is
a
structural
pillar
that
enables
scalable
innova1on.
11
E-­‐Money
vs
Paper/plas1c
P2P
payments
vs
Cash
Customer
data
safety
Vs
No
customer
data
Big
data
analy1cs
vs
Guess
work
Personalized
products
vs
One
size
fits
all
Lower
loss
rates
vs
High
NPLs
Faster
transac1ons
vs
Go
to
branch
E-­‐Applica1ons
vs
Wet
signature
FINANCIAL
TECHNOLOGY

12. NOT
THIS
INNOVATION
NOT
THIS
INNOVATION

13. CLOSER
TO
HOME

14. 14
FinTech-­‐enabled
innovaEon
–
what
is
needed?
Full-­‐service
branchless
banking,
microfinance,
inclusion
Bank
Rakyat
Indonesia
(BRI)
:
465
mobile
vans
+
10K
permanent
branches
USD
14B
in
micro
lending
alone
(7M
micro
credits
customers)
DomesEc
opportunity
:
USD
50B/year
Micro
lending
is
proxy
for
branchless
banking
with
massive
opportunity

15. 15
FinTech-­‐enabled
innovaEon
–
what
is
needed?
Credit
Scoring
for
Banked
and
Non-­‐Banked
Data
Sources
BANKED
:
40%
of
Indonesian
Adults
UNBANKED
:
60%
of
Indonesian
Adults
128
banks,
1,600
microbanks,
few
hundreds
mulE
finance
lenders

16. FinTech-­‐enabled
innovaEon
–
what
is
needed?
True
Digital
&
Mobile
Payment

17. FinTech-­‐enabled
innovaEon
–
what
is
needed?
True
Digital
&
Mobile
Payment

18. FinTech-­‐enabled
innovaEon
–
what
is
needed?
P2P
payments
and
money
transfers
18
BBM
MONEY

19. FinTech-­‐enabled
innovaEon
–
what
is
needed?
Online
Comparison,
Brokerage
&
Transparency
Consumer
lending
market
:
USD
120B
(12%
CAGR)
Retail
Insurance
:
USD
40B
(15%)
Life
Insurance
:
USD
20B

20. Impact of fintech
S t ruc tur a l
s o l u t i o n s f o r t h e
e - commerce
i n d u s t r y
E n a b l e S M E s
a n d t h e s m a l l
b u s i n e s s m a n
E n a b l e
c re at i v e
p roduce r s l i k e
g a m e s a n d
m u s i c t o g a i n
t r u l y m a s s
d i s t r i b u t i o n
E n a b l e
development
( m a s s m a r k e t
r ema ins
l a r g e l y
u n b a n k e d )

21. Announcing
today
the
so[-­‐launch
of
FinTech
Indonesia!
An
advocacy
group
consisEng
of
banks,
insurers,
other
associaEons,
regulators
and
startups.
Invited
members

22. NOW,
ARE YOU
READY
TO PET
THE TIGER?
Andy Zain
@andyzain
andyzain@gmail.com