The development in digital financial inclusion and rising economy of the GCC region and other ASEAN countries with growing remittance flow have been a major growth driver in Indonesia Remittance market of 2018.
Analysts at Ken Research in their latest publication “Indonesia Domestic and International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Banking and Non-Banking Channel, By Income Level Group, By Inflow & Outflow Remittance Corridors” believer that both M-wallet and E-money companies in Indonesia can play a major part in expansion plans for money transfer operations. This will help the international remittance sector to showcase a positive CAGR of 11.8% during the forecast period 2018-2023 in terms of transaction volume.
Adoption of Digital Channels: Growth in digital financial services (DFS) innovation in Indonesia fuels the growth of the digital remittance market. The adoption of digital channels is on an increase as it enables cheaper, more reliable transfers, and link users to mobile money and other formal financial institution. These services are more convenient and economical as compared with traditional operators, which show a major shift in the remittance industry towards digital channels. Also, the Bank of Indonesia has been continuously developing a remittance business model based on transferring funds to accounts, in order to replace the current cash-to-cash system.
Consumers in Indonesia still, prefer cash transactions even though there has been a large influx of M-Wallets and other digital payment methods which are safe, fast and efficient. They still accept cash and are more comfortable with cash transactions, rather than digital transactions. This arises from the fact that a large number of population in Indonesia is Unbanked. The unbanked population in Indonesia was evaluated at 52.0% in the year 2018.
Increased Overseas Migration: Indonesia Overseas Workers saw a surge in total number of migration from 3,549 thousand in 2017 to 3,652 thousand in the year 2018 thus showcasing a growth rate of 2.9% especially to both ASEAN and Middle East countries which contributes to the inflow of remittance in Indonesia. Major destination countries include Jordan, Malaysia, Qatar, Singapore, and the Kingdom of Saudi Arabia. Vast majority of Indonesian migrant workers are domestic staff that earns lower salaries than their regional peers. In addition, language barriers and skill gaps have limited their employment options and increased cost burdens. In the case of Japan, although the country’s aging population has created new opportunities for Indonesian nurses and caregivers, with a bilateral economic partnership enabling Indonesians and Filipinos to work in those roles, strict language requirements have kept Indonesians out of lucrative nursing positions.
Partnerships with Other Countries: Indonesia has also partnered with the postal office in Malaysia to support remittance flows in this corridor. This partnership has bolstered the remittance market and has also bolstered the transfers on this corridor.
Key Segments Covered:-
International Remittance Market
By Flow Type
Inbound
Outbound
By Channel
Bank
Non-Bank
By Major Flow Corridors
ASEAN
Asia Excluding ASEAN
Middle East
America
Europe
Australia & Oceania
Africa
By Income Level
Lower Level Income Group
Middle Level Income Group
High Level Income Group
Domestic Remittance Market
By Remittance Channels
Banks
Non Banks
By Major Flow Corridors
Urban to Rural Areas
Rural to Rural Areas
Urban to Urban Areas
By Income Level
Lower Level Income Group
Middle Level Income Group
High Level Income Group
Snapshot Bill Payment Market
By Type of Bills with Type of Families Spending
Very Conservative Family (Water, Electricity, Healthcare, Others)
Mediocre Family (Water, Electricity, Healthcare, Digital Products, Others)
Key Target Audience:-
Money Transfer Operators
Banks
Pawnshops
Bill Payment Companies
M-Wallets
Mobile Money Companies
Central Bank
Investors and PE Firms
Convenience Stores
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023
Companies Covered:-
Major Bank and Non- Bank Channels in Indonesia:-
Bank Mandiri
Bank Central Asia
Bank CIMB Niaga
Western Union
MoneyGram
Top Remit
OVO m-wallet
GoPay
Western Union
Key Topics Covered in the Report:-
Indonesia payment market
Indonesia Domestic Inbound Remittance Market
Indonesia International Outbound Remittance Market
Indonesia International Inbound Remittance Market
Cost of sending money from Europe to Indonesia
Indonesia Remittance Market Major Channels
Indonesia Bill Payments Market Share
Number of card and POS terminals in Indonesia
OVO Digital Payment Market in Indonesia
Cost of sending money from Africa to Indonesia
Indonesia Cashless Payments Market
Major Payment Gateways in Indonesia
Indonesia Mobile P2P Remittance Market
Indonesia Mobile Wallet and Payment Market
For More Information Click On the Below Mentioned Link:-
Indonesia Domestic and International Remittance Market
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