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Indonesia Country Report

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  • Published Date: December 2020

A comprehensive overview of the cards, payments and consumer banking market in Indonesia, with clearsighted commentary backed by historic and forecast data.

Card volumes decreased markedly in Indonesia during 2020 due to Covid-19, although debit cards surpassed a meaningful milestone in the year: 200 million cards in issue. However, debit cards are rarely used for purchases and credit card ownership levels remain low. The Indonesian authorities have been making a concerted effort to modernise the point of sale, with merchant service charges for off-us transactions reduced and a new common QR code standard introduced. In addition, the central bank has relaxed rules on credit cards to boost cashless transactions.

What you will learn from this Indonesia cards market report:

  • How the mobile phone is becoming pivotal for payments
  • The culture of Indonesian lending in a changing world
  • What cashless initiatives mean
  • Why credit cards are stagnant
  • How the affluent segment is growing in importance

INDONESIA CARDS & PAYMENTS REPORT | KEY FACTS

  • Indonesia is one of the world's fastest-growing payments markets, with its large population rapidly embracing digital payments.
  • Despite the country's challenging geography, a handful of state-owned institutions dominate retail banking.
  • In common with other emerging Asian markets, mobile looks set to be central to the future of payments here.
  • Competition is growing in mobile payments, with 55 licensed e-money platforms as of December 2020, up from 38 in 2019.
  • At the start of 2020, WeChat Pay formalised its entry into Indonesia, with CIMB Niaga processing transactions.
  • Transaction value on mobile wallets is also increasing rapidly. It trebled in 2019 to reach $10.2 billion.
  • Debit card ownership has grown strongly, but use for payments remains low, with the average adult making three debit card purchases in 2020.
  • The credit cards market has failed to ignite; card penetration is just nine percent and has not grown since 2014.
  • Credit cards have also been disproportionally affected by the pandemic, with spending down 30 percent year-on-year.
  • A new domestic card scheme, NPG, was created in 2017, offering lower merchant fees to boost card acceptance.
  • NPG has also simplified transaction switching and ended the practice of merchants maintaining multiple POS terminals.

Indonesia Payments Research | Report Contents


Key Topics
Demographics and the economy
Payments environment
Cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information

Appendices: Card Payments Data

Appendix I: Demographics and the economy

  • Demographic and economic indicators
  • Ownership of key consumer devices
  • Internet usage by population

Appendix II: Payments environment

  • Access points
  • Account penetration
  • Consumer payment trends
  • B2C e-commerce payment methods

Appendix III: Cards market data

  • Total cards payment metrics
  • Credit card numbers
  • Total credit cards metrics
  • Credit cards profitability indicators
  • Debit cards numbers
  • Debit cards metrics

Appendix IV: Mobile payments

  • Mobile money metrics
  • Mobile proximity payment metrics
  • Mobile P2P payments

Appendix V: Profit pool

  • Profit pool

Appendix VI: Card networks

  • Networks' credit card market shares
  • Networks' credit card numbers
  • Networks' credit card billed volume
  • Networks' number of credit card transactions
  • Networks' average credit card transaction value
  • Credit card interchange fees by network
  • Networks' debit card market shares
  • Networks' debit card numbers
  • Networks' debit card billed volume
  • Networks' number of debit card transactions
  • Networks' average debit card transaction value
  • Debit card interchange fees by network

Appendix VII: Key retail banks and issuers

  • Key credit card issuers market shares by credit card numbers
  • Key issuers market shares in credit card outstandings
  • Key debit card issuers market shares by debit card numbers

Appendix VIII: Acquirers and processing

  • Merchant acquirer credit card market share
  • Credit card merchant service charges
  • Merchant acquirer debit card market share
  • Debit card merchant service charges
  • Credit card issuer/issuing processor relationships
  • Credit card acquirer/acquiring processor relationships
  • Credit card issuing processor market shares by card numbers
  • Credit card acquiring processor market shares by the number of POS transactions

Appendix IX: Online acquiring data

  • Online merchant acquirer market share

Indonesia Country Report | Selected Extracts


Demographics and Economy:
Around 55% of Indonesia's population reside in urban areas such as the capital Jakarta, Surabaya and Bandung, reflecting the importance of the industrial and tertiary sectors, each of which accounts for over 40% of GDP.

Payments Environment:
Indonesia is one of Asia's most exciting and attractive markets for digital payments, with an estimated 92% of its adult population owning a mobile phone.

Cards market:
Total billed volume made on payment cards (including credit and debit cards) reached $47 billion in 2019, an increase of 54% over 2014.

Mobile Payments:
Indonesia had 41 active e-wallets in the first half of 2020. The leading offerings are integrated into other ecosystems, whether by teaming up with offline merchants or establishing exclusive partnerships with companies that have a large user base.

Profit Pool:
Credit cards remain a profitable business for issuers in this market, with an estimated pre-tax profit of $746 million in 2019, a 14% increase over the previous year. Profit per card stood at $43 during the same period but is forecast to decrease during the forecast period.

Card Networks:
There were about 17.5 million credit cards in circulation at the end of 2019, representing a penetration rate of just nine credit cards per 100 adults. The number of debit cards increased by 14.4% to reach 174.4 million in 2019. They are forecast to surpass the 225 million mark in 2021.

Key Retail Banks and Issuers:
The banking environment in Indonesia is complex: various government initiatives for financial inclusion exist alongside Islamic banking products, rural banks, retail banks and fintech products – all competing to serve 269 million people.

Acquiring and Processing:
With an estimated four POS terminals per 1,000 people at the end of 2019, Indonesia remains in want of an adequate card acceptance infrastructure.

Online Acquiring:
The retail e-commerce market in Indonesia amounted to $21.5 billion in 2019 and is forecast to reach $31.2 billion in 2020.

Regulatory and Markets Information:
In 2020, Bank Indonesia (BI) capped fees for payments using QR codes and established standards to ensure interoperability. Consumers who use just one payment system can conduct transactions with other systems as well, rather than having to maintain multiple accounts.

Indonesia Payments Report | Entities Referenced

AccorHotels
Agoda
Air Asia
Alibaba
Allianz
American Express
Ant Financial
ANZ Indonesia
Artajasa Pembayaran Elektronis
ATM Alto
ATM Bersama
ATM Link
ATM Prima
Bank Bukopin
Bank Central Asia
Bank Danamon
Bank Duta
Bank Ekonomi Raharja
Bank Indonesia
Bank Mandiri
Bank Mega
Bank Negara Indonesia
Bank of China
Bank Rakyat Indonesia
Bank Tabungan Negara
BCA
BI
BI-FAST
Blibli
BNI
BRI
Bukalapak
Cashlez
Cigna
CIMB Niaga
Cineplex 21
Citibank
Citilink Indonesia
Dana
Data Hub
Daya Network Lestari
DBS
DBS Indonesia
Disney Indonesia
DOKU
Financial Service Authority
Financial Services Sector Master Plan
Flazz.
Garuda Indonesia
Garuda
Gerbang Pembayaran Nasional
Gojek
Google
GoPay
GPN
Grab
GrabPay
Häagen-Dazs
HSBC
Indonesia Payment Systems Blueprint 2025
Indonesian Idol
Indonesian Standard QR Code
Integrated Payment Interface
JCB
JD.id
KB Kookmin Bank.
Lazada
Le Club
LinkAja
Lippobank
Mastercard
Matahari Mall
Maybank Indonesia
McDonald's
Midtrans
Mobey
National Financial Inclusion Strategy
National Non-Cash Movement
National Payment Gateway
NETS
NPG
OJK
Oppo
Otoritas Jasa Keuangan
Ovo
Pegipegi
Pertamina
PrimaDebit
Prudential
PT Alto Network
PT Artajasa Pembayaran Elektronis
PT Jalin Pembayaran Nusantara
PT Penyelengara Transaksi Elektronis Nasional
PT Rintis Sejahtera
QRIS
Rabobank
Rintis Sejahtera
Shopee
Shopee
Sigma Cipta Caraka
Sinar Mas Land
Sinarmas
SmartPesa
SML
SoftBank
Standard Chartered
Starbucks
T-cash
Telekomunikasi Indonesia
Telkomsel
Tencent Holdings
Tiket.com
Tokopedia
Traveloka
UnionPay
Visa
Viva
WeChat Pay
Zalora

MORE ASIA-PACIFIC CARDS & PAYMENTS REPORTS

Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.

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