Development and Opportunities of FinTech Ecosystem in Indonesia

FinTech in Indonesia is an emerging industry, showing a burgeoning increase since 2014. The biggest attributes to Indonesia’s FinTech sector is its huge potential demand market, which is just the competitive advantage in Indonesia’s FinTech ecosystem, whilst the talents lag behind. Capital invested to this sector has a big leap in recent years, both from home and abroad. For the government, some favorable programmes has been implemented to facilitate FinTech development while managing the potential risks with the regulatory measures, like the " Regulatory Sandbox” and a regime focusing on P2P. Actually, regulatory regimes are necessary for Indonesia to achieve the inclusive finance. Due to a very low bank penetration and insufficient physical infrastructure, plus a weak consuming conscious on FinTech products currently for Indonesians, FinTech companies from China would get a big share of Indonesian FinTech market, for example, the personal credit and small and medium-sized enterprises’ financing, especially for the China’s unicorn enterprises. Meanwhile, China could increase the financial support to help local construction, thereby achieving a win-win situation in the local development of FinTech sector.