Indonesia Digital Transformation Outlook Briefing 2016
Indonesia Digital Transformation Outlook Briefing 2016
Indonesia Digital Transformation Outlook Briefing 2016
Spike Choo
Country Director, Indonesia
1
Year in Review: Global Key Highlights of 2015
Robust growth (~25% YoY) but market still small compare to China and US
Positive factors driving e-Commerce growth in APAC such as sizable and youthful
population, robust economic growth from and higher domestic spending
2015
2019 US, ASEAN 6,
11.6%
CAGR 321.2
553.2
24.1%
411.6 430.0
277.0 China,
24.9% 217.3 1,375.0
6.5 14.8
ASEAN 6 China US
ASEAN 6 refers to SG, MY, ID, TH, PH, VT Source: Frost Analysis 3
Indonesia e-Commerce Market Snapshot
3,800
31.1% 2,950
2,400
1,850
1,350
1,100
750
4
Growth Drivers of Ecommerce
A fast growing economy with a young population and increasing income
$896 $1,207
2015 2019
5
Growth Drivers of Ecommerce
Highly saturated & competitive landscape with good mix of local and global players
C2C
B2B2C
B2C
Niche Multi-category Brokers
6
Key Restraints of Ecommerce
Poor land infrastructure and inaccessibility of banking services are key challenges
25% 26%
20%
13%
8%
Indonesia Banking Population (millions) Preferred Online Payment Mode, Q3, 2013
Banked Population Unbanked Population
Credit Card 11%
Debit Card 29%
36%
61% Prepaid Card (Pre-loaded with money) 4%
Cash 51%
64% Cheques 1%
39%
Electronic Payment 3%
2014 2019
Other 1%
7
Credit & Debit Card Payment Market Growth
Cash is still the predominant payment mode for offline transaction
Estimated 113 million ATM+Debit cards and 17 million credit cards in circulation at the end
of 2015.
Debit card outnumber credit card by about 6.7 to 1
Total annual credit card transaction value is ~1.3 times higher than debit cards.
Average annual transaction per credit card is 16, per debit card is 3
The average transaction value per credit card is about IDR1Mn compare to IDR605K
for debit card
First E-Money product (Gazcard) was launched by Pertamina in 2006 in collaboration with
Bank Mandiri, BNI and BRI. Numerous banks, telco, gaming and other companies have
launched numerous e-money instruments (both cards and server based products)
More than half of issuers are Banks follow by telecom (T-Cash, XL Tunai) & others
(Doku, Artajasas Mynt, etc)
Most cards focus on Retail & Transportation, follow by online & bill payment
Average value per transaction ~IDR10,000, Annual transactions per card ~12
7.9
0.7
26.5
10
Predictions for 2016
11
F&S E-Commerce & E-Payment Capabilities
12
Thank You