Diving into the heart of financial innovation, this whitepaper unveils the captivating narrative: Why is the Indonesian Peer-to-Peer Lending Market primed for unparalleled growth? What enigmatic factors fuel this upward trajectory, defying conventional norms? Can the dynamic blend of technology and lending truly reshape Indonesia's financial landscape?
Explore these compelling questions and embark on a journey through data-driven insights, groundbreaking trends, and the power of untapped potential. Join us as we decode the forces driving exponential expansion and reveal the alluring promises this market holds.
|Age Group||Population, 2022|
|0-14||~66.1 Mn (24.0%)|
|15-29||~67.1 Mn (24.3%)|
|30-49||~82.3 Mn (29.9%)|
|50-64||~41.5 Mn (15.1%)|
|64+||~18.6 Mn (6.7%)|
These enterprises contribute 61% or IDR 8.57,400 trillion to the nation’s GDP
MSMEs provide employment for 97% of the nation’s total workforce – around 117 Mn workers
Wholesale and retail trade
Agriculture, forestry, and fisheries
Transportation and communication
Rise of e-commerce
Access to Finance
Access to Markets
Business Support Services
|Net assets (land and building excluded)||Less than 50 Mn IDR||50 Mn IDR–500 Mn IDR||500 Mn IDR–10 Bn IDR|
|Total annual sales value||Less than 300 Mn IDR||300.0 Mn IDR–2.5 Bn IDR||2.5 Bn IDR to 50.0 Bn IDR|
|Employment||1-4 people||5-19 people||20-99 people|
Demand from SMEs
Massive opportunity for P2P Lenders
Partnership with Commercial Banks
Most local platforms are not yet fully digitized, which is a deterrent for lenders who are looking for a seamless investment experience.
P2P platforms are focusing on to strengthen their risk management over credit assessment, compliance, and operational procedures through dedicated teams.
By entering the necessary policies and having it recognize the platform’s borrower assessment patterns, machine learning is transforming and refining the entire credit approval process.
Institutional finance (Banks) is finding ways within the existing regulatory framework to penetrate the market lending segment by working alongside P2P lending platforms.
Platforms are using Chatbots to improve overall customer experience and platform loyalty by taking in the questions and feedback from customers and generate appropriate answers / best practices.