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Growth in the Overseas Labor Migration, Improving Global Economy, Changing Regulations and Entry of the New Remittance Players has led to the Growth of Indonesia Remittance Market: Ken Research
September 2019

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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 Information Click On the Below Mentioned Link:-

Indonesia Domestic and International Remittance Market

Related Reports by Ken Research:-

Singapore International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Banking and Non-Banking Channel, By Inflow & Outflow Remittance Corridors

Philippines Remittance and Payments Market Outlook to 2024 - Growth Backed by Sustained Internal Migration, Rise in Overseas Filipino Workers and Surge in BPO Sector

Europe International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Channels (Banks, MTOs, M-wallets, and Others), By Inflow & Outflow Remittance Corridors, By Point of Contact (Branch Pick-up, Mobile Payment & Online Transactions, Prepaid Cards

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249