Indonesia’s fintech ecosystem is entering a new growth phase driven by digital banking expansion, cryptocurrency adoption, and digital investment platforms.

The Indonesia Fintech Report 2025 shows that these three verticals are rapidly reshaping how Indonesians save, spend, and invest—propelled by innovation, regulation, and consumer trust.

Digitalization, mobile-first behavior, and regulatory support from OJK and Bank Indonesia (BI) have made fintech a central driver of the country’s financial inclusion goals.

Digital Banking Gains Strong Momentum

Digital banking is one of the fastest-growing fintech segments in Indonesia.

As of early 2025, 17 digital banks were active, including fintech-led ventures like Krom Bank, and tech-backed platforms such as LINE Bank and TMRW by UOB Indonesia.

Transaction value in this sector reached IDR 58.5 trillion (US$3.6 billion) in 2023—an 11.3% increase year-on-year and a 30-fold jump since 2020. The figure is projected to grow further to IDR 71.6 trillion (US$4.4 billion) in 2024.

Leading players such as Bank Neo Commerce (25.6 million users), Bank Jago (15.3 million), and SeaBank (13 million) dominate the market, followed by Allo Bank, Jenius, and Bank Aladin Syariah.

“Digital banking offers unmatched convenience with 24/7 access, instant onboarding, and deep integration with lifestyle apps,” the report notes.

Cryptocurrency Emerges as a Long-Term Investment

Indonesia’s crypto market is expanding at a remarkable pace, driven by a 14.16 million-strong investor base as of April 2025—up 3.28% from March.

Monthly transaction value climbed to IDR 35.61 trillion (US$2.2 billion), reflecting growing investor confidence.

Globally, Indonesia ranks seventh in crypto adoption, with most investors viewing digital assets as a long-term investment rather than speculative trading.

Leading exchanges include Indodax, TokoCrypto, and Bittime, which together serve millions of users and process tens of millions in daily trading volume.

“Many Indonesians see crypto as part of their financial future, not just a short-term trend,” said the report, citing data from OJK and Chainalysis.

Digital Investing and the Rise of Wealthtech

Wealthtech platforms are powering Indonesia’s new generation of investors.

Companies such as Stockbit, Ajaib, and Pluang are redefining how Indonesians engage with capital markets, offering user-friendly apps, fractional investing, and social trading features.

In 2024, Stockbit recorded 976,000 daily transactions with a trading volume of IDR 3.32 trillion (US$199 million)—making it Indonesia’s most active stock trading platform.

Pluang continued its regional expansion, joining the Philippine SEC sandbox to test fractional U.S. stock investments under its new “Flow” brand.

Meanwhile, Ajaib launched Ajaib Lite and Ajaib Pro in May 2025 to cater to both beginners and advanced traders.

“We are seeing a democratization of investing, where technology enables access for all classes of investors,” the report highlights.

Sharia-Compliant Investing Gains Traction

Islamic fintech is also accelerating within Indonesia’s wealthtech landscape. The country ranks third globally in the Global Islamic Fintech (GIFT) Index 2024/25, accounting for 13% of the world’s Islamic fintech firms.

Platforms like Alami Group and Bibit are leading this charge—Alami achieved 283% revenue growth between 2020 and 2023, while more than 1 million Bibit investors have activated Sharia-compliant investment features.

This momentum cements Indonesia’s reputation as both a regional fintech powerhouse and a global hub for Islamic digital finance.

PHOTO: FREEPIK

This article was created with AI assistance.