How Does International Remittance Market Operates In Indonesia?
Over the review period 2013-2018, the international remittance market of Indonesia has been displayed a chequred growth in terms of transaction value. The international remittance market has shown a steady growth, with an annual average growth rate of ~% over the years 2013-2015, with a shallow fall depicting a negative growth rate of ~% in year 2016. The market had a surge in the growth rate, up from ~% in 2016, to ~% in 2018. The CAGR in terms of value of transactions had been ~% over the review period, increasing from USD ~ million in 2013 to USD ~ million in 2018. The average value of transaction in USD ~ for 2013 to USD ~ in 2018, with moderate growth rate of ~% in the period 2017-2018, and a CAGR of ~% in review period 2013-2018. Although the market experienced pioneering and unmatched growth in the period 2017-2018 in terms of average value of transaction and value of transaction. The volume of transactions experienced an average growth rate of ~% in 2018, with a CAGR of ~% during review period 2013-2018, with a negative growth rate of ~% in 2016. The market recovered, with an increase in the volume of transactions from ~ million in 2013, and then falling to ~ million in 2016, to ~ million in 2018. Long-term stable market shows a dip in 2016, due to a government drive to end the practice of exporting low-cost labor. In February 2015 President Joko Widodo announced the country would halt migration of female domestic labor, instructing the BNP2TK1 to formulate a strategy to implement this policy.
What Major Flow Corridors In Indonesia International Remittance Market?
Indonesia has been a major remittance receiver in Asia Pacific regions. Major inflow corridors for Indonesia have been ASEAN countries, Asia except ASEAN countries and Middle East countries. ASEAN countries have been highest contributor in the inbound remittance market of Indonesia over the review period. The ASEAN-Indonesia corridor accounts for ~% in 2018, equivalent to USD ~ million. The corridor still dominates, yet the contribution has decreased from ~% in 2013 to ~ in 2018. The volume of transactions in 2018 was USD ~ million. The volume has certainly increased over the review period, yet the contribution saw a decrease. This has been due to the diversification of the destination countries of the Indonesian migrants looking for employ ability options overseas. The emigrants are moving to Saudi Arabia, which is the destination country accounting for maximum immigrants of Indonesian descend.
What Is Competitive Scenario In Indonesia International Remittance Market?
Indonesia International Remittance market has been majorly dominated by inflow of remittance when compared to outflow of remittance in terms of volume of transactions with almost ~% of inbound remittance and ~% of outbound remittance in 2018. International remittance market was found to be moderately concentrated with presence of both international and domestic money transfer operators and banks. Both Bank and Non-Bank channels actively working International Remittance market. Major dominance of banking channel was observed in the review period of 2013-2018 for both inbound and outbound remittance with major bank such as BCA and Bank Mandiri with market share of ~% in terms of volume of transaction, whereas BCA with Money Gram tie-up is the market leader in banking channel in Indonesia with ~% of market share in terms of transaction volume in 2018. . For Non-banking channels which include money transfer operators, m-wallet companies play a major role in international remittance market of Indonesia.
What Is The Future Outlook For Indonesia International Remittance Market
Indonesia International Remittance market is expected to show increasing trend in the remittance market in forecasted period. Oversea deployment of Indonesian work will boost the international market. As more and more, skilled laborers and C&B level employees will look for jobs overseas. In 2018, increased global remittance trend was observed, mainly due to the growth in European countries, the Russian Federation, and the United States. The rebound in remittances, when valued in U.S. dollars, was helped by higher oil prices and a strengthening of the euro and ruble. These factors have influenced the remittances to low and middle income countries the most, one among which is Indonesia. It is expected that during the review period 2018-2020, the market size shall be augmented by these factors. International remittance market is forecasted to grow from USD ~ million in 2018 to ~ in 2023 growing at a CAGR of ~% in the forecasted period of 2018-2023.
How Does Bill Payments Market Operate In Indonesia?
Indonesia’s payments ecosystem is developing with world-class technology entering in the market recently. Hence, consumers and businesses still rely substantially on cash and cheques, due to entrenched behaviors and inefficient support processes and lower cost of using such modes. With a young growing population of over ~ million people and around ~ million people entering the consumer class each year, Indonesia has seen significant attention from global and local technology companies, which in the last two or so years revolutionized the retail and transportation sectors. The primary instruments for business payments is cash as Businesses take advantage of the ease-of-use, ubiquity and universal acceptance of cash all over the country. The speed and transparency of the cash transfers in Indonesia on a daily basis has bolstered the use of cash and cheque by businesses. On the basis of volume of transactions, there has been a positive increase, from USD ~ million in 2013, to USD ~ million in 2018, with a CAGR of ~%. Analogously, the increase in Volume of Card and e-money payments also witnessed a CAGR of ~%, increasing from USD ~ thousands in 2013 to USD ~ thousands in 2018. The volume of credit transfers experienced a CAGR of ~% over the review period, increasing from USD ~ million in 2013 to USD ~ million in 2018.
How Indonesia Mobile P2P Remittance Does Works?
Peer-to-Peer (P2P) Transfer Services facilitate the direct transfer of funds between individuals, generally from their credit cards or bank accounts via the internet and/or mobile phones as the primary mediums for such services. many recent models (such as that adopted by Square) append on the existing network-rails and new transaction technologies offered by major card providers (i.e. MasterCard, Visa) such as the Original Credit Transaction (OCH), which enables users of their platforms to perform near-instant transfers with their debit cards alone without necessarily attaching a bank account. P2P Money Transfers segment amounts: USD ~ Million with Average Transaction Size: USD ~ in 2018. P2P providers is able to offer a substantially lower-fee for transferring funds, as many of the platforms does not need to establish their own financial infrastructures and pursue more cost-effective means of conducting money transfer (as is the case with TransferWise).
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