According to the publisher, the alternative lending market in the country is expected to grow by 31.7% on an annual basis to reach US$ 6.51 billion in 2023.
Medium to long term growth story of alternative lending in Indonesia remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 17.8% during 2023-2027. The alternative lending market in the country will increase from US$ 4.94 billion in 2022 to reach US$ 12.56 billion by 2027.
The Indonesian alternative lending industry is poised to record strong growth over the next five years. Rising internet penetration, coupled with the growing fintech ecosystem, are among the factors that are aiding the growth of the alternative lending market. Going forward, the high inflationary environment and the subsequent fall in consumer disposable income are projected to support the loan disbursal volumes for alternative lenders.
To tap into the growing credit demand among Indonesian consumers, the publisher also expects global fintech players to expand their digital lending products into the Southeast Asian market. The demand for credit is also growing among small and medium-sized businesses. Consequently, to cater to this segment, digital lenders are expected to launch products for the B2B category. All of these factors indicate a robust growth period for the alternative lending market in Indonesia over the next five years.
With growing competition in the e-commerce sector, these short-term loan providers are strengthening their in-store network. Akulaku, for instance, has partnered with more than 40,000 offline retailers in Southeast Asia and is planning to further expand partnerships with merchants, both online and offline. These strategic collaborations, coupled with growing adoption among shoppers, will keep aiding the growth of the alternative lending industry in Indonesia over the next five years.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Medium to long term growth story of alternative lending in Indonesia remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 17.8% during 2023-2027. The alternative lending market in the country will increase from US$ 4.94 billion in 2022 to reach US$ 12.56 billion by 2027.
The Indonesian alternative lending industry is poised to record strong growth over the next five years. Rising internet penetration, coupled with the growing fintech ecosystem, are among the factors that are aiding the growth of the alternative lending market. Going forward, the high inflationary environment and the subsequent fall in consumer disposable income are projected to support the loan disbursal volumes for alternative lenders.
To tap into the growing credit demand among Indonesian consumers, the publisher also expects global fintech players to expand their digital lending products into the Southeast Asian market. The demand for credit is also growing among small and medium-sized businesses. Consequently, to cater to this segment, digital lenders are expected to launch products for the B2B category. All of these factors indicate a robust growth period for the alternative lending market in Indonesia over the next five years.
Foreign fintech firms are planning to expand their digital lending solutions in Indonesia
A high percentage of the Indonesian population does not have access to basic financial services. This has resulted in more and more consumers turning to alternative lending providers to access credit in Indonesia. As a result, global fintech firms are expanding their presence in the Southeast Asian market to tap into the growing credit demand.- In February 2023, Lentra, an India-based digital lending platform, announced that it has entered the Indonesian market. The foray into the Southeast Asian region comes on the back of a US$60 million fundraising, which was led by Bessemer Venture Partners, Citi Ventures, and SIG. In addition to Indonesia, the firm has also forayed into the Philippines and Vietnamese markets. With this expansion, it plans to reach US$100 million in annual recurring revenue by March 2024.
- In September 2022, Hong Kong-based digital lender WeLab also announced its expansion in Indonesia after the acquisition of Jakarta Bank, which operates 11 commercial branches in the country. WeLab, in partnership with other investors, spent US$509.6 million to acquire the Indonesian commercial bank and plans to launch digital banking services for the tech-savvy population in the Southeast Asian market in 2023. Going forward, the publisher expects more foreign players to expand their footprint in the Indonesian market, as the burgeoning fintech landscape will provide firms with a high-growth environment.
The growing buy now pay later industry will aid the growth of the alternative lending market in Indonesia
The convenience and flexibility offered by buy now pay later schemes have resulted in widespread adoption of the payment method among consumers over the last few years. This trend is projected to further accelerate, as lower credit card penetration and financial inclusion drive more consumers to BNPL schemes. GoTo, Kredivo, and Akulaku are among the different players seeking to gain market share in one of the fastest-growing fintech sectors in Southeast Asia.With growing competition in the e-commerce sector, these short-term loan providers are strengthening their in-store network. Akulaku, for instance, has partnered with more than 40,000 offline retailers in Southeast Asia and is planning to further expand partnerships with merchants, both online and offline. These strategic collaborations, coupled with growing adoption among shoppers, will keep aiding the growth of the alternative lending industry in Indonesia over the next five years.
Digital lenders are expected to launch new lending solutions catering to the needs of businesses in Indonesia
In addition to the growing demand for alternative lending products in the B2C segment, the need for credit is also on the rise in the B2B category, especially for small and medium-sized businesses. The current macroeconomic environment, including high inflation and interest rates, means that access to traditional credit is becoming expensive for SMEs. Consequently, more and more businesses are expected to turn to digital lenders to meet their working capital requirements. As a result, the publisher expects alternative lending providers to launch new products and solutions catering to the needs of businesses in Indonesia.- Digital lenders such as PT Bank Neo Commerce have already announced the launch of new lending products for SMEs in Indonesia. This launch is aimed at driving the monthly active users of its applications to over 50%, compared to 30% to 40% as of November 2022. Going forward, alternative lenders are also expected to follow the same strategy. The launch of these products, coupled with the entry of new fintech firms in the segment, will keep driving the competitive landscape as well as innovation in the Indonesian alternative lending industry over the next five years.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This report provides in-depth data-centric analysis of Alternative Lending industry in Indonesia through 127 tables and 150 charts. Below is a summary of key market segments:Indonesia Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Indonesia Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Indonesia Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Indonesia Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
Indonesia Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Indonesia Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Indonesia Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
Indonesia Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
This report offers a comprehensive insight into the alternative lending market in Indonesia, covering the following key areas:- Comprehensive Market Intelligence: This report offers a thorough scrutiny of the alternative lending market in Indonesia, providing a deep dive into its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion, based on the payment instruments, finance models, and loan types covered in the report.
- Economic Indicators: Access to Indonesia's economic indicators, including GDP, unbanked population, unemployment rate, and loan default rate, to empower your business with crucial data for market analysis and strategic planning.
- Industry Attractiveness Analysis: In-depth trend analyses for transaction value, average value, and transaction volume within the Indonesia alternative lending sector. This information aids in assessing the industry's appeal and potential for growth.
- Strategic Segmentation Analysis: The report presents an extensive analysis of market segments based on financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) and end-users (consumers, businesses, and property).
- Growth Projections: The report contains future growth projections for the Indonesia alternative lending market, classified by end-user, financial model, and payment instrument. These projections offer insights into areas with growth potential within various market segments, aiding your company in strategy alignment and informed decision-making.
- Loan Type Analysis: A thorough examination of loan types, including B2C Loans (Personal Loans, Payroll Advances, Home Improvement, Education/Student Loans, Point of Sale, Auto Loans, Medical Loans) and B2B Loans (Lines of Credit, Merchant Cash Advance, Invoice Factoring, Revenue Financing), offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Get a closer look at consumer behaviour and attitude, segmented by age, income, and gender, which can aid in developing targeted marketing and lending strategies.
Table of Contents
1. About this Report
2. Indonesia Economic Indicators
3. Indonesia Alternative Lending Industry Attractiveness
4. Indonesia Alternative Lending Market Size and Forecast by End User
5. Indonesia Alternative Lending Market Size and Forecast by Finance Models
6. Indonesia Alternative Lending Market Size and Forecast by Payment Instrument
7. Indonesia Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. Indonesia Alternative Lending Market Size and Forecast by Loan Types
9. Indonesia Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 164 |
| Published | October 2023 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value ( USD | $ 6.5 Billion |
| Forecasted Market Value ( USD | $ 12.6 Billion |
| Compound Annual Growth Rate | 17.8% |
| Regions Covered | Indonesia |
