Retail Payment Systems
In the OIC Member Countries
51
4.2 Indonesia
Highlights:
 The largest Muslim country and economic growth remains prevalent. With multiple efforts
of the Central Bank in regulating the financial sector, there is more financial stability, thus
increasing confidence in growth for retail payment systems.
 Telecommunication service providers are increasing their stake in providing electronic
money to primarily unbanked consumer groups.
 Penetration of mobile phones has exceeded the number of the population, reaching around
120% in 2013, or 1.2 mobile phones per person.
Introduction
Indonesia is Southeast Asia’s largest economy with 240 million people and GDP growth rate
above 65.5.0% in 2012 (World Bank, 2014) and projected to remain above 65% for the
foreseeable future. During the difficult financial conditions of 2009 worldwide, Indonesia’s
economy was among the top worldwide performers due to factors including strong domestic
demand and rich natural resources. The country now enjoys solid macroeconomic
fundamentals, a stable currency and recent upgrades in bond ratings have helped make
Indonesia an optimistic economy. A large percentage of the population, however, has little or
no access to financial services due to geographical, infrastructural and cost barriers.
With only 50-6090 million Indonesians, or 2035.9% of the population estimated to have bank
accounts (Global Findex, 2015) and between 96 million and 114 million185 million individual
mobile subscriberssubscriptions (Indonesia eMarketer, 2015), mobile telephone networks
look to have the potential to provide extensive financial services (IFC, 2010). Furthermore, the
gap between bank account holders and mobile subscribers is only going to increase over the
next few years as the mobile subscriber population continues to grow, currently estimated at
around 70 million bank account holders and approximately 150 million unique mobile
subscribers by 2013.
General Banking and Payment Landscape
Indonesia’s commercial banks control more than 95 percent of total deposits and assets
(USAID, 2011). The three largest banks (Bank Mandiri, Bank Central Asia/BCA, and Bank
Rakyat Indonesia/BRI) represent 35% of total assets. The 10 largest banks control more than
60% of assets. This concentration of resources has enabled the larger banks to expand
services, but has inhibited their interest in serving less profitable, down-market segments.