Digitisation of the economy is one of the focus areas for Indonesia’s growth. President Joko Widodo (Jokowi) is targeting a minimum of 20 million MSMEs to enter the digital ecosystem in 2022, followed by 24 million by 2023, and 30
The Government of Indonesia announced the extension of tax incentives for Micro, Small and Medium Enterprises (MSMEs). In addition, Bank Indonesia issued a regulation on banking obligations to fulfil credit distribution for MSMEs and low-income individuals (PBR) at least 20%
Data from the Financial Services Authority (OJK) shows that 70% of Micro, Small and Medium Enterprises (MSMEs) in Indonesia have yet to access financing from banks, due to weak financial assets and poor data transparency. Consequently, fintech companies plan to
OJK is drafting regulations that will limit institutional lenders from funding fintech peer-to-peer lenders. OJK’s new regulation involves setting distinct criteria for institutional lenders, specifically for overseas capital. For local capital, a bank is able to fund up to 25%
GoTo, a joint entity of Gojek and Tokopedia, recorded total transactions of US$ 29.4 billion (IDR 420 trillion) for 2021. GoTo CEO, Andre Soelistyo, illustrates that Gojek and Tokopedia seek to build a digital bridge (marketplace) for micro, small and
OJK noted that the distribution of credit by fintech lenders to the productive sector continues to increase, reaching US$ 8 billion (IDR 114.76 trillion) as of October, and 43.6% of the total disbursements are channeled to productive sectors. In 2020,
With the increasing relevance of the e-commerce sector, more MSMEs have digitized. However, the government has identified 7 barriers faced by MSMEs to successfully digitize. Some of those barriers are lack of innovation in the digital economy, limited integration with
The Ministry of Finance (Kemenkeu) received a debt settlement of US$ 1.5 million (IDR 20.48 billion) from 1,292 small debtors including MSMEs and students. These state receivables are part of a crash program or debt relief scheme provided by the
Grab, Emtek, and Bukalapak launched “City of the Future”, an extensive accelerator program targeting Micro, Small and Medium Enterprises (MSMEs) in smaller cities, and peri-urban areas. The program focuses on three priorities: (1) vaccination, (2) adoption of digital platforms, and
In line with OJK’s urge for fintech peer-to-peer lenders to increase lending outside Java, many alternative lenders have adopted varied strategies to expand their geographic reach. For example, fintech Danamas plans to increase its non-Java region lending from US$
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