Articles
Indonesia Domestic and International Remittance Industry: Ken Research
by Rati Ram Business DeveloperHow 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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About Rati Ram 
Business Developer
173 connections, 3 recommendations, 575 honor points.Joined APSense since, February 12th, 2014, From Gurgaon, India.
Created on Oct 17th 2019 04:59. Viewed 415 times.
