By continuing to browse this website, you consent to our use of cookies, as well as to our Terms of Use and Privacy Policy which provide additional information about how we process your data. This website uses cookies to enhance your user experience. Please read our Cookies Policy for more information on how we use cookies, as well as instructions on how to disable cookies. You may disable cookies through your internet browser settings, however this may result in some parts of the website not working properly for you.

INSIGHTS / THE BIG PICTURE

Investing in Indonesia: The fintech companies driving a new influx of capital

Indonesia · Dec 05, 2018 · By Putu Agung Wija Putera

With 66% of Indonesians not owning a bank account, fintech startups have come up with myriad innovative products to entice a new generation of retail investors 

With an estimated financial inclusion gap of US$57 billion, the shortfall between the demand and formal supply of financial services is rapidly being filled by diverse fintech platforms catering to a new generation of retail investors in Indonesia.

Local startups, such as P2P lenders, are introducing new ways to reach out to Indonesia’s unbanked citizens across the archipelago that are currently underserved by traditional institutions. To add to the mix, e-commerce sites are also partnering with well-established banks and new fintechs to offer a wide range of financial, credit and investment services to a new breed of e-shoppers.Government programs to improve financial literacy are also drawing more people into stocks and bonds, as alternatives to conventional saving accounts, gold, real estate and other business investments. But stocks, bonds and index funds are complex financial instruments that may often require higher starting capital investments. Fortunately, new initiatives like the Capital Market School, or Sekolah Pasar Modal, run by the Indonesian Stock Exchange, are providing the much-needed knowledge to help many people to start investing in the capital markets.

 

Edited by Suzanne Soh and Gareth Gardiner Jones

This page is exclusive for Premium subscribers

Subscribe now to continue accessing our full range of insights and data.


Already have a Lister Premium Account? LOG IN

Tags