Jakarta. Indonesia has witnessed a sixfold growth in its fintech scene with the number of fintech players growing from only 51 in 2011 to 334 in 2022, according to a report by AC Ventures and Boston Consulting Group (BCG).

The report, titled "Indonesia's Fintech is Ready to Rise", revealed that the payment segment was initially leading the country’s fintech space. In 2011, payments accounted for 55 percent of the fintech players in Indonesia. About 14 percent of the players came from the lending segment that year. 

The lending space climbed to the first spot at 35 percent in 2022. Payments came in at a close second as they represented 33 percent of Indonesia’s fintech players, followed by wealthtech at 17 percent. New players in software-as-a-service (SaaS) and insurance segments are also emerging, the report finds

Customer engagement is on the rise with Indonesia now having more than 63 million e-wallet users as of 2020. The number of e-wallet users is forecast to have a compound annual growth rate (CAGR) of 26 percent between 2020 and 2025. Indonesia recorded over 63 million e-wallet transactions in 2021, growing at 123 percent CAGR in the period 2017 and 2021.

The lending space posted over 30 million active peer-to-peer (P2P) borrower accounts in 2021. During 2018-2022, Indonesia’s lending segment saw a 50 percent CAGR growth in new borrower accounts. Data also showed that the loans disbursed in 2022 exceeded $17 billion. 

The report revealed that 6 million small and medium enterprises were now using SaaS platforms, marking a 26-fold expansion over the past three years. The wealthtech segment hit over 9 million retail investors as of 2022. The report also wrote the wealthtech and digital trading net asset value (NAV) had topped $20 billion in 2021.

The investment which flowed into Indonesian fintech in 2020-2022 reached $3.2 billion, about 4.6 times the funding seen in 2017-2019, according to the report.

“Today, Indonesia’s macro environment is exciting, and we are now part of the G20 countries. We have become one of the leading markets for fintech and the digital economy in the world. This has become one of the most crucial developments of our country for the next decade,” Pandu Sjahrir, the founding partner at AC Ventures, said in recorded remarks shown at the report launch in Jakarta on Wednesday evening.

Read More: Regional Payment Connectivity Must Not Stop at ASEAN-5: Indonesia

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