Online transaction value in Indonesia 2011-2020

In 2020, the e-money transaction value in Indonesia amounted to approximately 205 trillion Indonesian rupiah. In comparison, 981 billion Indonesian rupiah were recorded in 2011. In 2014, the central bank initiated the national noncash movement (GNNT) as Indonesia eyed becoming Southeast Asia’s digital hub.

Towards a cashless society

More than 70 percent of Southeast Asia’s population is either underbanked or unbanked. It is therefore unsurprising that non-bank fintech companies are now dominating the scene. In Indonesia, an increasing number of consumers are opting for payments via digital and mobile wallets. The leading e-wallet mobile applications in Indonesia are Gojek, OVO, DANA, LinkAja and Jenius. An e-wallet like Go-Pay is popular because it can be conveniently reloaded at minimarts, petrol kiosks, and even ATMs around the country– a useful service in a nation where digital connectivity is still mostly centered around its urban centers.

Rise in e-payments driven by the young

The e-commerce market growth in Indonesia is driven by its youthful population, where the age group with the highest e-commerce expenditure is between 30 to 39 years old. Internet and smartphone penetration are also contributing factors in the growing adoption of digital payments for various purposes apart from shopping. It was also found that the internet penetration rate among students aged five to 24 years in Indonesia was at its highest in 2019, at 53.06 percent. Recently, Yogyakarta State University students could use e-wallets to pay their tuition fees and get cashback using Tokopedia, one of the most popular e-commerce sites in the country.