How Remittance Market Is Positioned In Indonesia?
Indonesia Remittance Market: – The Indonesia economy was recorded as the 16th largest economy in the world by nominal GDP as of 2018 and has been one of the most emerging market economies in the world. The economy of Indonesia grew by ~% in 2018, meeting the estimation of the government of Indonesia of ~% in 2018. The total population in Indonesia was recorded at ~ million in 2018, growing by ~% from ~ million in 2017. Majority of populations resides in a few island/regions of the country such as Jakarta Region, Java Regions with a majority of the Muslim population of approximately ~% in 2018. Jakarta, the capital, and the urban sprawl that surrounds it has a population of more than ~ million as of 2016 and is one of the largest cities in the country. This interregional and intraregional migration has increased domestic remittance in Indonesia.
According to the estimates, Indonesian overseas workers accounted for almost ~% of Indonesia labor force in 2016, whereas this number of ~ million would be an underestimate as many of the workers are going out of the country through unauthorized channels. The majority of overseas workers are employed as domestic workers followed by caregivers, operators and plantation workers. In 2017, remittance contributed to ~% of the country’s GDP. Mostly, this remittance is coming from countries such as GCC countries, ASEAN countries and Asia countries other than ASEAN countries. Also, Indonesia has seen large scale interregional and intraregional migration to popular cities including Jakarta, Surabaya and Java Region. There has been interregional and intraregional migration from areas such as Sumatra Regions, Yogyakarta, and others.
How does a domestic remittance market operate in Indonesia?
The domestic remittance market of Indonesia witnessed a surge in growth rate in the past few years. The rising internal migrant population both intraregional and interregional owing to better job opportunities has triggered the size of the industry. Internal immigrant population was evaluated at 9.8 million which accounted for temporary internal migrants in 2015. During the period, 2013-2018, the domestic remittance market has displayed a remarkable growth at a CAGR of ~% in terms of transaction volume generated from personal remittance within the country. The domestic remittance market in Indonesia rose from USD ~ million in the year 2013 to USD ~ million in the year 2018.
The total number of domestic money transactions in the country has increased from ~ million in 2013 to ~ million in 2018 as a result of an increase in the urbanization populations looking for better jobs in major cities in the country. The non-banking institutions in the country have expanded their business line by offering customers a wide range of services such as low transaction fees, end to end assistance and less paperwork. Moreover, the non-banking institutions have targeted the unbanked population by offering them door to door pickup and delivery services thus increasing the domestic remittance market in 2018.
What Major Types Of Transfer Channels In Indonesia Domestic Remittance Market?
The share of the banking channel was highest in 2013, which was ~% and has been declining gradually ever since except for in 2015, in terms of Number of Transactions. Although it has been the lowest in 2018, it has been one of the most popular channels of remitting money in and out of the country, with the total number of transactions being ~ million in 2018, equivalent to a market share of ~% in 2018. In terms of Volume of Transactions, Banks have held the majority of the market share with ~% in 2013, though this has been declining over the years with the market share in 2018 being ~%. The share of the non-banks has been recorded to be increasing since 2013, from ~% in 2013 to a record high of ~% in 2018, in terms of volume of transactions. The lowest percentage share has been recorded in the year 2013, 2015 and 2016. MTOs have not been dominating the market, but have been capturing more and more market share ever since their introduction in the Domestic remittance market. The volume of transactions has increased almost threefold, from ~ million in 2013 to ~million in 2018.
What Is The Competition Scenario Of the Indonesian Domestic Remittance Market?
Indonesia’s domestic remittance market is moderately concentrated with the presence of multiple players including money transfer operators, banks, M-wallets and postal networks. Among the banks that are operating in the domestic market, Bank Mandiri and Bank Central Asia hold approximately ~% of the market in terms of volume of transactions carried via banks in 2018. The Bank Mandiri holds the maximum share of the market in terms of volume of transactions, which is 37.0%, in 2018. In Indonesia, the choice of the channel varies with the type of remittance i.e. whether it is domestic or international. The domestic remittance market is dominated by banks, controlling ~% of the market in terms of volume of transactions, as customers prefer banks owing to their wider accessibility and security, with experience in the domestic market.
What Is The Future Outlook For the Indonesian Domestic Remittance Market?
The continuous growth in internal population mobilization has been a major factor in increasing the domestic remittance market. Over the years, mobilization of the population to the regions with high employment opportunities from ~% in 2010 to ~% in 2018 is expected to increase further in the forecasted period. During the forecast period of 2018-2023, the domestic remittance market is expected to grow at a CAGR of ~% from USD ~ million in 2018 to USD ~ million in 2023. Domestic remittance market is currently dominated by the banks in the country and a very low market share is held by the non-bank channels. As the pawnshops are increasingly putting the focus on the improvement and innovations in their service portfolio, the banks are also constantly putting efforts to launch new domestic remittance related products. This effort is expected to prove beneficial for the banks to increase their share in the market.
Indonesian government working all out to make Indonesia a business-friendly country by improving its rating from 91 to 72 in 2018 for ease of doing business according to the world bank.
Key Segments Covered:-
International Remittance Market
By Flow Type
Inbound
Outbound
By Channel
Bank
Non-Bank
By Major Flow Corridors
ASEAN
Asia Excluding ASEAN
Middle East
America
Europe
Australia & Oceania
Africa
By Income Level
Lower Level Income Group
Middle-Level Income Group
High-Level Income Group
Domestic Remittance Market
By Remittance Channels
Banks
Non Banks
By Major Flow Corridors
Urban to Rural Areas
Rural to Rural Areas
Urban to Urban Areas
By Income Level
Lower Level Income Group
Middle-Level Income Group
High-Level Income Group
Snapshot Bill Payment Market
By Type of Bills with Type of Families Spending
Very Conservative Family (Water, Electricity, Healthcare, Others)
Mediocre Family (Water, Electricity, Healthcare, Digital Products, Others)
Key Target Audience:-
Money Transfer Operators
Banks
Pawnshops
Bill Payment Companies
M-Wallets
Mobile Money Companies
Central Bank
Investors and PE Firms
Convenience Stores
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023
Companies Covered:-
Major Bank and Non- Bank Channels in Indonesia:-
Bank Mandiri
Bank Central Asia
Bank CIMB Niaga
Western Union
MoneyGram
Top Remit
OVO m-wallet
GoPay
Western Union
Key Topics Covered in the Report:-
Indonesia payment market
Indonesia Domestic Inbound Remittance Market
Indonesia International Outbound Remittance Market
Indonesia International Inbound Remittance Market
Cost of sending money from Europe to Indonesia
Indonesia Remittance Market Major Channels
Indonesia Bill Payments Market Share
Number of card and POS terminals in Indonesia
OVO Digital Payment Market in Indonesia
Cost of sending money from Africa to Indonesia
Indonesia Cashless Payments Market
Major Payment Gateways in Indonesia
Indonesia Mobile P2P Remittance Market
Indonesia Mobile Wallet and Payment Market
For Information Click On the Below Mentioned Link:-
Indonesia Domestic and International Remittance Market
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