indonesia

IN DEVELOPMENT

Indonesia is still in the planning stages of launching an IP system, with no set date for deployment. However, it has all the hallmarks of a country that could see huge IP adoption.

In terms of what we do already know, Bank Indonesia (BI) is planning to roll out an IP system known as BI-FAST, as part of Indonesia’s 2025 Payment System Vision. BI-FAST will act as an infrastructure for faster interbank transfers as well as card-based payments. It will adopt RTGS mechanisms and operate 24/7/365.

MARKET DEVELOPMENT

ACCEPTANCE
  • Consumers
  • Banks
  • Merchants
  • Billers

Population banking level

1.04

Number of debit, credit and charge cards per adult

42

Index to global average

U

Underbanked

66%

% of adults who have a mobile wallet and have used it in the past year

Share of volumes by payments instrument

Transactions

2019
2024

Spend (USD)

2019
2024
  • Paper-based payments
  • Electronic payments
  • Immediate payments

Insight

Indonesia presents a high potential market for IP adoption. Paper-based payments are by far the most popular payment method (in terms of both transactions and spend), and payment card ownership is among the lowest in the world, with a 42 index to the global average.

Additionally, mobile wallet adoption has been extremely strong, nearly tripling in size since 2016 with almost two-thirds of adults having used a mobile wallet in the past year.

Given this — and assuming acceptance is widespread across the ecosystem — adoption should be strong among Indonesian consumers.

ACI’s take

The Indonesian government has already expressed its ambition for the future of payments. Its “2025 vision” aims to reinforce the integration of national digital economy and finance, facilitate faster digital transformation within banking, and ensure interlinks between fintechs and banks. It also wants to fortify the balance among innovation, consumer protection, integrity, stability and competition, while simultaneously safeguarding its national interests as its cross-border economy grows.

The planned IP scheme could play a significant part in enabling all of this, as other regions around the world have shown. Decision makers in Indonesia’s IP planning process can take plenty of inspiration from other nations that are leveraging centrally-driven digital transformation initiatives.

Downloads

The P27 Opportunity

As the Nordics continue to set the standard for the future of digital payments, what can the rest of the world learn about successful cross-border payment initiatives?

Download PDF

Building the Foundations of a Real-Time World

Hoping to drive IP growth in your nation? Discover how governments and central banks around the globe have successfully built the foundations for real-time success.

Download PDF

Real-Time Payments Modernization

From real-time payments to enhanced data, payments modernization has many benefits. But before they can be enjoyed, the challenges of modernization must be overcome.

Download PDF

The U.S. Real-Time Opportunity

The time for real-time payments in the U.S. has arrived. Understand how financial institutions across the payments ecosystem can truly capitalize on the opportunity now.

Download PDF

The New Era for Acquiring

Acquirers operate in a complex and challenging landscape. To thrive throughout the next decade, they must have the right capabilities in place — as we reveal inside.

Download PDF