Indonesia International Remittance Business Report 2023: Transaction Value and volume, Key Players, Channels, Consumer Profile, and Sending/Receiving Countries

Indonesian International Remittance Market

Dublin, Jan. 17, 2024 (GLOBE NEWSWIRE) — The “Indonesia International Remittance Market Business and Investment Opportunities – Analysis by Transaction Value & Volume, Inbound and Outbound Transfers to and from Key States, Consumer Demographics – Q2 2023” report has been added to ResearchAndMarkets.com’s offering.

This report provides a comprehensive analysis of the international inbound and outbound remittance market in Indonesia. It covers the market opportunity by transaction value, transaction volume, average value per transaction, key market players, market opportunity by channel, consumer profile, and by sending/receiving countries.

The international inbound remittance market in Indonesia has increased at 3.6% during 2022 to reach US$ 9.95 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 2.9%, increasing from US$ 9.61 billion in 2022 to reach US$ 11.51 billion by 2028.

The international outbound remittance market in Indonesia has increased at 4.0% during 2022 to reach US$ 4.63 billion in 2023. Over the forecast period (2023-2028), market size is expected to record a CAGR of 3.3%, increasing from US$ 4.45 billion in 2022 to reach US$ 5.46 billion by 2028.

The Indonesian remittance market is projected to report strong growth over the next three to four years. In the short to medium-term perspective, the decline in inflation levels is expected to aid the growth of the remittance inflows in Indonesia. The growing Indonesian community overseas has seen their income levels decline due to inflation and interest rate environment, subsequently hampering their ability to send large remittances back home.

In the long term, the market growth will also be driven by the growing competitive landscape. Several new players, especially global firms, are entering the Indonesian market to tap into the lucrative growth opportunity. Furthermore, domestic fintech firms are also expanding their presence in the remittances market through mergers and acquisition deals in 2023. These trends are projected to continue further over the next few quarters.

Global firms are launching their remittance service offerings in the Indonesian market through expansion

With the Indonesian remittance industry projected to grow at a consistent rate over the next three to four years, global firms are launching their services in the market to accelerate business growth.

SBI Group, the Japanese conglomerate, entered into a strategic partnership with its international remittances arm SBI Remit, Ripple, and SBI Ripple Asia in September 2023. As part of the collaboration, the firm will provide an XRP-based remittance service to bank accounts in Indonesia, alongside other Southeast Asian countries such as Vietnam and the Philippines.

The recent collaboration with Ripple means that the company will now provide quick and affordable retail money transfers through On-Demand Liquidity (ODL), with support from Tranglo, a cross-border payment hub located in Singapore.

Fasset, the Middle East-based firm, has also announced its expansion in the Southeast Asian region, including in Indonesia. The firm launched its super app and going forward is planning to introduce remittance services.

The growing presence of these global players in the Indonesian market will further aid the competitive landscape in the domestic market, thereby supporting innovation and mergers and acquisition trends from the short to medium-term perspective.

Fintech firms are adopting mergers and acquisition routes to enter the remittance market in Indonesia

To add more value for their existing users and attract new ones, fintech firms are seeking to launch new products in the Indonesian market. This is driving the uptake in mergers and acquisition deals in 2023.

Brick, the Indonesian fintech firm, announced that it had acquired a majority stake in PT Eastern Transglobal Remittance (ETR) in October 2023. Notably, PT Eastern Transglobal Remittance (ETR) holds a category 3 payment service provider license for remittance services. Through the acquisition of ETR, Brick is launching three B2B payment products, catering business transactions, and cashflow management.

These products include BrickPay, BrickFlex, and Brick Financial API. BrickPay will allow money transfers to various destinations at once. BrickFlex, on the other hand, is a buy now pay later facility. Brick Financial API will enable tech businesses to integrate BrickPay into their existing systems. As of October 2023, Brick has processed nearly US$200 million in annual payments for its clients.

Going forward, the publisher expects more such mergers and acquisition deals to take place in the Indonesian market, as more and more firms seek to tap into the growing market opportunity over the next three to four years.

Indonesian central bank initiates trial of cross-border QR code payments with Singapore

The Indonesian central bank, in August 2023, announced the commencement of cross-border QR-based payments with Singapore. The goal of this pilot initiative is to allow users to make instant and secure payments by scanning QRIS or NETS QR codes. This payment system aims to make it easier for people and businesses, especially small and medium-sized enterprises (SMEs), to engage in cross-border trade, online business, and financial transactions.

Additionally, it will contribute to the growth of tourism, now that international travel has resumed following the COVID-19 pandemic. The number of travellers between Indonesia and Singapore has reached 1.9 million arrivals in Indonesia from Singapore and 3.1 million arrivals in Singapore from Indonesia. The broader rollout of the payment mechanism will further aid the growth of the remittance industry in Indonesia from the short to medium-term perspective.

Key Attributes:

Scope

International Inbound Market Opportunity Trend Analysis in Indonesia

• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

Market Share of Key Players in Indonesia

International Inbound Market Opportunity Trend Analysis by Channel in Indonesia

• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Inbound Remittance Analysis of Consumer Profile in Indonesia

• Analysis by age group of senders
• Analysis by income of senders
• Analysis by occupation of senders
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Inbound Remittance Flow Analysis (Country to State/Region) in Indonesia

• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state/regions

International Outbound Market Opportunity Trend Analysis in Indonesia

• By Transaction Value
• By Transaction Volume
• By Average Value Per Transaction

International Outbound Market Opportunity Trend Analysis by Channel in Indonesia

• Digital (transaction value, transaction volume, average value per transaction)
• Mobile (transaction value, transaction volume, average value per transaction)
• Non-Digital (transaction value, transaction volume, average value per transaction)

International Outbound Remittance Analysis of Consumer Profile in Indonesia

• Analysis by age group of senders
• Analysis by income of sender
• Analysis by occupation of sender
• Analysis by occupation of beneficiaries
• Analysis by purpose

International Outbound Remittance Flow Analysis (State/Region to Country) in Indonesia

• Market opportunity by key sending countries (transaction value, transaction volume, average value per transaction)
• Market share by transfer channel by key state/regions

For more information about this report visit https://www.researchandmarkets.com/r/qt9iql

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• Indonesian International Remittance Market

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