| Indonesia 2025 Market Overview | |
|---|---|
| Payment Organisation | GPN (Gerbang Pembayaran Nasional) – national electronic payment network in Indonesia. GPN was established and is regulated by the Central Bank – Bank Indonesia. BI-FAST – national real-time retail payment infrastructure |
| Domestic Payment Brands | GPN cards – mostly for domestic use BI-FAST is the mobile A2A payment service in Indonesia. |
| Market Structure | Card usage in Indonesia is lower than that of countries in the Southeast Asia region at 6.33 card payments per capita in 2023. |
| Notable Market Trends | BI-FAST becoming mainstream in retail and P2P transactions, Growth in E-Wallet Usage and Financial Super Apps, Continued Exploration of Digital Currency, Growing Focus on Embedded Finance and API-Based Innovation |
| Major Card Issuers | BCA, Bank Mandiri, Bank Negara. |
| Major Card Acquirers | Bank Mandiri, BCA, Bank Negara. |
| Major Card Processors | GPN (domestic), Xendit, DOKU, Midtrans |
| Indonesia Key Statistics 2023 | |
|---|---|
| Population | 278.7 million, with 3.98 bank cards per capita. |
| Cards | Debit: 281.4 million Credit: 17.7 million Total: 299.2 million |
| Card Payments | Debit: 1.37 billion; value IDR 567.79 trillion ($37.2 billion) Credit: 0.38 billion; value IDR 397.01 trillion ($26.0 billion) Total: 1.76 billion; value IDR 964.80 trillion ($63.3 billion) |
| POS Terminals | 2,015,374 |
| POS Payments | All cards: 1.80 billion; value: IDR 897.00 trillion ($58.8 billion) |
| ATMs | 2,485 |
| ATM Withdrawals | All cards: 4.18 billion; value: IDR 3,196.8 trillion ($209.7 billion) |
| Digital A2A Payments | Credit Transfers: 17.4 billion, value: IDR 65,399.15 trillion |
Introduction – Payments in Indonesia
Indonesia, the world’s largest archipelago (comprising more than 17,000 islands) and Southeast Asia’s most populous nation, is home to over 278 million people and a dynamic, rapidly evolving payments landscape. As the region’s largest economy, Indonesia is experiencing a profound transformation in how consumers and businesses transact, driven by a young, mobile-first population, rising internet penetration, and bold regulatory reforms. Bank Indonesia (BI), the country’s central bank, plays a crucial role in regulating and fostering a modern, efficient, and inclusive payment system.
Over the past decade, the Indonesian government and Bank Indonesia have prioritized digitalisation, financial inclusion, and innovation to modernize the national payments ecosystem. As a result, the country has witnessed a remarkable acceleration in its digital payments landscape. More recently, Bank Indonesia introduced The Indonesia Payment System Blueprint 2025 (IPS 2025) to guide the country towards a cashless society with a focus on creating a seamless, secure, and inclusive digital economy. The IPS 2025 aims to build a payment system that is integrated, interoperable, and responsive to the evolving needs of a digital economy.
Indonesia’s payment ecosystem is characterized by a vibrant mix of traditional banks, fintech startups, and technology giants. The proliferation of smartphones, enabled by a high mobile connection exceeding 125% of the population, has fueled the rise of digital wallets and mobile payment platforms such as GoPay, OVO, Dana, and ShopeePay. These e-wallets are now integral to daily life, capturing a significant share of urban consumer transactions and driving the shift away from cash.
A cornerstone of Indonesia’s digital transformation is the rollout of BI-FAST, a 24/7 real-time account-to-account (A2A) payment infrastructure operated by Bank Indonesia. BI-FAST enables instant fund transfers across financial institutions using proxies such as mobile numbers or email addresses, with transaction fees capped at Rp 2,500 (approximately USD 0.16). This system is widely embedded in mobile and internet banking applications, promoting seamless digital transfers between individuals and businesses. These platforms support QRIS payments, peer-to-peer transfers, e-commerce checkouts, and bill payments, while increasingly expanding into lending, insurance, and investment services through embedded finance.
Complementing BI-FAST is QRIS (Quick Response Code Indonesian Standard), Indonesia’s unified QR code system launched in 2019. QRIS standardizes QR-based payments across all banks and e-wallets, simplifying digital transactions for consumers and merchants alike. It is particularly instrumental in digitizing micro, small, and medium enterprises (MSMEs), informal sector vendors, and public services, by enabling them to accept payments through any compliant QR-based app using a single code.
Indonesia’s domestic card network is represented by GPN (Gerbang Pembayaran Nasional), the National Payment Gateway. GPN consolidates domestic debit card transactions under a unified, interoperable network governed by Bank Indonesia. GPN cards are issued by major banks and function primarily for domestic transactions, offering enhanced data sovereignty, security through chip-based authentication, and lower transaction fees for merchants.
The rise of super apps, especially those linked to ride-hailing and e-commerce platforms, has been pivotal in mainstreaming digital payments. These apps provide an integrated experience combining lifestyle services with payment functionality and are particularly effective in reaching previously underbanked populations through smartphone penetration rather than traditional bank accounts.
Indonesia’s digital payment landscape is shaped by 4 core pillars:
- Card-based payments, the National Payment Gateway (GPN), and Visa, Mastercard, Amex, JCB, and UnionPay issued by banks for international transactions.
- Real-time Account-to-Account (A2A) payments via BI-FAST – The national real-time payment system that enables instant, efficient, and low-cost interbank fund transfers 24/7.
- Digital wallets and E-money – Platforms like GoPay, OVO, Dana, and ShopeePay dominate everyday transactions, offering convenience, security, and integration with lifestyle services.
- QR code payments – QRIS provides a unified, interoperable QR standard, enabling merchants of all sizes to accept digital payments easily and affordably.
These pillars are complemented by ongoing enhancements in card-based payments, the expansion of merchant acceptance infrastructure, and the emergence of super apps that bundle payments with broader financial and lifestyle services. The pillars work in tandem to serve a broad spectrum of users, ranging from urban digital natives to rural micro-entrepreneurs, providing flexible, contextual, and inclusive payment solutions across channels.
Indonesia’s payment landscape is undergoing a digital revolution, propelled by regulatory foresight, technological innovation, and a commitment to inclusion. With a robust foundation in real-time payments, standardized QR codes, and a flourishing e-wallet ecosystem, Indonesia is poised to become a regional leader in digital commerce and financial innovation. The country’s strategic focus on interoperability, security, and accessibility ensures that its payments ecosystem will continue to evolve—empowering consumers, businesses, and the broader digital economy for years to come.
Legal Framework for Payment Services
Indonesia’s payment services sector operates under a robust and evolving legal framework, primarily regulated by Bank Indonesia, the country’s central bank and principal authority for payment system oversight. Bank Indonesia’s mandate encompasses maintaining monetary and financial system stability, promoting innovation, and ensuring the safety, efficiency, and reliability of the national payment ecosystem. In addition, the Financial Services Authority (Otoritas Jasa Keuangan or OJK) regulates the banks and protect consumers in the financial services industries.
Bank Indonesia holds primary authority over payment systems, monetary stability, and systemic risk mitigation, while OJK supervises the broader financial services industry, including fintech lending and capital markets. Together, they oversee the licensing, conduct, and risk management practices of both bank and non-bank payment service providers (PSPs).
The regulatory landscape is shaped by a combination of foundational laws, central bank regulations, and strategic blueprints, most notably the Indonesia Payment System Blueprint 2025 (IPS 2025). This framework is designed to support digital transformation, foster competition, and safeguard consumer interests, while adapting to technological advancements and market shifts.
The primary legislation governing payment services in Indonesia includes Bank Indonesia Regulation No. 23/6/PBI/2021 on Payment System and its various implementing regulations and circulars. This regulation establishes the core legal framework for Payment System Service Providers.
Bank Indonesia Regulation No. 23/6/PBI/2021 on Payment System Providers
This comprehensive regulation forms the cornerstone of Indonesia’s payment services legal framework, outlines the licensing requirements for payment service providers, regulates their conduct, and oversees the safety and integrity of payment systems. It categorizes payment service activities, such as fund transfer, payment initiation and/or acquiring services, information on funds, and payment instrument issuance. Bank Indonesia also designates certain payment systems as critical, subjecting them to enhanced regulatory oversight to ensure financial stability.
Bank Indonesia Regulation No. 23/7/PBI/2021 on Payment System Infrastructure Providers
This regulation governs entities that operate critical payment system infrastructure, including clearing, settlement, and switching services. It sets out licensing, risk management, and business continuity standards for infrastructure providers, ensuring the integrity and reliability of payment system operations.
Indonesia Payment System Blueprint 2025 (IPS 2025)
IPS 2025 serves as the strategic policy framework, outlining the vision and priorities for Indonesia’s payment system modernization. It guides regulatory development in areas such as open banking, digital payment acceptance, financial inclusion, and the adoption of new technologies. The IPS aims to identify solutions in utilizing digital innovation opportunities to bring 83.1 million unbanked people and 62.9 million MSMEs into formal economics and finance.
Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Regulations
Payment service providers are subject to stringent Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations. These requirements are aligned with international standards and enforced through Bank Indonesia and the Financial Services Authority (OJK). Providers must implement robust Know-Your-Customer (KYC) procedures, ongoing transaction monitoring, and suspicious activity reporting to mitigate financial crime risks. The key obligations under the AML/CTF laws in Indonesia include Customer Due Diligence, appointment of a compliance officer, implementing AML/CFT procedures that meet the standards of the Financial Services Authority (OJK), and regular and ongoing training of employees.
Personal Data Protection Act (PDP)
The PDP Law, Law No. 27 of 2022, is a comprehensive legal framework enacted to safeguard personal data within and beyond the borders of Indonesia. The PDP governs the collection, use, and disclosure of personal data by organizations in Indonesia. This global reach aligns Indonesia’s data protection practices with international standards, notably the European Union’s General Data Protection Regulation (GDPR). It applies to every individual or company, public agency and international organization that performs legal acts as regulated under the PDP Law within Indonesia and outside Indonesia provided that such act has legal consequences within Indonesia and/or for personal data subject of Indonesian citizens outside Indonesia.
Banking Sector
Indonesia’s banking sector is overseen by two principal authorities: the central bank, Bank Indonesia, responsible for monetary policy and payment system oversight, and the Financial Services Authority (Otoritas Jasa Keuangan, OJK), which supervises and regulates banking, capital markets, insurance, and non-bank financial institutions. Bank Indonesia’s mandate encompasses maintaining monetary and financial system stability, formulating and implementing monetary policy, managing the country’s foreign reserves, and ensuring the smooth operation of payment systems. OJK, operating independently, is tasked with safeguarding the soundness, integrity, and consumer protection standards of the broader financial services sector.
The legal and regulatory infrastructure for banking in Indonesia is grounded in key legislation such as the Banking Act of Indonesia (Law No. 7/1992), the Bank Indonesia Act (Law No. 23/1999), and the OJK Act (Law No. 21/2011), complemented by comprehensive regulations, circulars, and guidelines issued by both BI and OJK to maintain financial resilience. This framework supports risk-based supervision, enforces prudential standards on capital adequacy, liquidity, and AML/CFT compliance, and aligns the sector with international best practices in governance, cybersecurity, and consumer protection.
Structure
Indonesia’s banking landscape comprises a diverse mix of state-owned banks, regional development banks, private national banks, foreign banks, and a growing number of digital banks. These institutions provide a wide array of financial services, including retail and corporate banking, payments, trade finance, and increasingly, digital financial services.
The sector is dominated by four large banks – Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), and Bank Negara Indonesia (BNI) – which are systemically important and collectively account for a significant share of total banking assets. These banks are recognized for their extensive branch networks, financial resilience, and leadership in digital transformation and financial inclusion efforts. Of these four banks, only BCA is not a state-owned bank and stands out as a leading private bank.
In addition to these major players, Indonesia also has a substantial number of other commercial banks, including subsidiaries of various Asia-based and international banks. The banking sector also includes rural banks (Bank Perkreditan Rakyat – BPR), which primarily serve local communities and micro, small, and medium enterprises (MSMEs). The Islamic banking sector is also growing, with dedicated Islamic banks and Sharia units within conventional banks.
Recent years have seen the emergence of digital banks and neobanks, licensed to operate fully online and targeting underserved segments such as millennials, SMEs, and the unbanked. Since 2021, Indonesia has introduced a regulatory framework for digital banks, allowing fully digital institutions to operate with a commercial bank license. These digital banks leverage innovative technology, data analytics, and partnerships with fintechs to broaden access to banking services and accelerate the shift toward a cashless, digital-first economy.
According to data from Bank Indonesia, as of end of 2024, Indonesia’s banking sector includes:
- 105 Commercial Banks
- 4 State-Owned Commercial Banks
- 39 Regional Development Banks (BPDs)
- 21 Foreign Bank Branches/Subsidiaries
- 1,356 Rural Banks (BPRs)
- 5+ Fully Digital Banks
The top four state-owned banks account for 55.3% of total banking sector assets as of 2024, reflecting a concentrated banking structure. These institutions also dominate the retail and MSME lending markets and are key players in national payments infrastructure (BI-FAST, QRIS, GPN).
Bank Mandiri, the largest local banking group in Indonesia, accounting for 19.2% of banking assets as of end-2024. It stands as the most dominant financial institution in Indonesia, with a comprehensive presence across consumer, corporate, and institutional banking sectors.
Indonesia’s banking sector is thus defined by strong regulatory oversight, a diverse institutional landscape, and a strategic commitment to digital transformation, financial inclusion, and sustainable growth
| 1 - Leading Indonesian Banks in 2024 | |||
|---|---|---|---|
| Bank | Ownership | Total Assets ($m) | Market share |
| Bank Mandiri | Government of the Republic of Indonesia: 52%, Others: 48% | 159,228.1 | 19.2% |
| Bank Rakyat Indonesia (BRI) | Government of the Republic of Indonesia: 53.19%, Others: 46.81% | 130,741.5 | 15.7% |
| Bank Central Asia (BCA) | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% | 95,075.5 | 11.4% |
| Bank Negara Indonesia (BNI) | Government of the Republic of Indonesia: 60%, Others: 40% | 74,116.3 | 8.9% |
| Bank Tabungan Negara (BTN) | Government of the Republic of Indonesia: 60%, Others: 40% | 30,807.1 | 3.7% |
| Bank CIMB Niaga | CIMB GROUP SDN BHD: 91.45%, Others: 8.55% | 23,630.8 | 2.8% |
| Bank Syariah Indonesia (BSI) | Bank Mandiri: 51.46%, BNI: 23.24%, BRI: 15.37%, Others: 9.93% | 26,805.4 | 3.2% |
| Bank OCBC NISP | OCBC Overseas Investment: 85.08%, Others: 14.92% | 18,434.4 | 2.2% |
| Permata Bank | Bangkok Bank Public Company Limited: 98.71%, Others: 1.29% | 16,995.1 | 2.0% |
| Bank Danamon | MUFG Bank, Ltd: 92.47%, Others: 7.53% | 15,897.4 | 1.9% |
| Leading banks total | 591,731.6 | 71.2% | |
| other banks | 239,142.6 | 28.8% | |
| Total assets | 830,874.2 | 100.0% | |
| Source: Bank Indonesia, Bank's Annual Reports, Yearbook research. | |||
Bank Mandiri was established in 1998 through the merger of four state-owned banks and has since evolved into a full-service universal bank and one of the most systemically important financial institutions in Indonesia. As of the end of 2024, Bank Mandiri operates a nationwide network of over 2,200 branches and service points, complemented by a growing digital ecosystem through platforms like Livin’ by Mandiri (retail) and Kopra by Mandiri (wholesale). It serves more than 35 million individual customers and over 200,000 corporate and institutional clients, spanning micro, SME, commercial, and large enterprise segments.
Bank Rakyat Indonesia (BRI) – the second-largest financial bank in Indonesia by total assets with a market share of 15.7% in 2024. BRI operates from nearly 8,000 branches and 10,662 ATMs in Indonesia, serving nearly 30 million retail customers as of 2024. BRI’s strong focus on micro, small, and medium enterprises (MSMEs) and financial inclusion has expanded its customer base, making it one of the largest retail banks in the country. BRI also maintains an international presence with representative offices and subsidiaries in Singapore, Hong Kong, Timor-Leste, and the United States, primarily to support remittances, trade finance, and international business activities.
Bank Central Asia (BCA) – continues to solidify its position as the largest private bank by asset size in Indonesia. The bank had a network of 1,264 branches, 19,543 ATMs, and robust digital channels including the widely used myBCA and BCA mobile platforms in Indonesia as of 2024. The bank served more than 33 million customers in 2024, a growth of more than 45% over 3 years. Initially focused on corporate banking, BCA has evolved over the decades into a leading full-service bank with strong capabilities across retail banking, payments, SME lending, and digital financial services.
Bank Negara Indonesia (BNI) – established in 1946 as Indonesia’s first state-owned bank, has grown into a leading universal bank with a strong national and international presence. Originally serving as the country’s central bank and later transitioning to a state-owned commercial bank, BNI has played a pivotal role in supporting Indonesia’s economic development and financial sector modernization. By the end of 2024, BNI had 1,780 branches and sub-branches and 13,388 ATMs in Indonesia. By the end of 2024, the Government of the Republic of Indonesia owned 60% of BNI’s shares while the public, both individuals and institutions, had the remaining 40%.
Digital Banking
Digital banking in Indonesia is undergoing a rapid and transformative evolution, driven by a dynamic interplay of established traditional banks, innovative digital-only entrants, strong consumer demand, expanding mobile and internet access, and a supportive regulatory environment led by Bank Indonesia and the OJK. This landscape is designed to enhance financial inclusion across the country.
As of 2024, digital banking adoption in Indonesia continues to accelerate, with over 130 million internet users and smartphone penetration exceeding 70%. The growing digital-first population, coupled with an increasingly inclusive financial sector, is fueling the rise of mobile banking as a primary channel for daily financial transactions. All major banks, including Bank Mandiri, BRI, BCA, BNI, and CIMB Niaga, have launched robust mobile and internet banking platforms. Apps like Livin’ by Mandiri, BRImo, BCA mobile, and BNI Mobile Banking offer a full suite of services: from account management and fund transfers to bill payments, QRIS-based merchant payments, digital savings accounts, e-wallet top-ups, and investment access.
A defining feature of Indonesia’s digital payment ecosystem is the seamless integration with its national real-time payment systems. The Quick Response Code Indonesian Standard (QRIS), introduced in 2019, has become ubiquitous, standardizing QR code payments and enabling instant transactions for over 30 million MSMEs and merchants. This has significantly reduced reliance on cash. Furthermore, BI-FAST, Bank Indonesia’s national real-time retail payment infrastructure launched in December 2021, connects over 135 banks and payment providers, facilitating 24/7 instant transfers and settlements at affordable fees. These systems are deeply embedded within digital banking applications and popular digital wallets, ensuring frictionless and immediate payment experiences nationwide.
The regulatory environment also plays a crucial role in fostering this growth. The OJK and Bank Indonesia have issued progressive regulations, such as POJK 12/2021, POJK 13/2021, and BI-FAST regulations, which provide clear frameworks for digital bank operations, encourage innovation, and ensure market stability and consumer protection. Bank Indonesia’s Indonesia Payment System Blueprint 2025 (IPS 2025) outlines strategic pillars to modernize the national payment system, focusing on open banking, infrastructure enhancement, and expanding digital payment adoption to further drive financial inclusion and economic growth across the country.
Digital Banking Initiatives of Commercial banks
Bank Mandiri – The bank operates two digital platforms in Indonesia – “Livin’ by Mandiri” which is a mobile application for individual customers and “Kopra by Mandiri” which is a digital service for wholesale (business and corporate) customers. In 2024, Livin’ by Mandiri achieved significant growth, with registered users reaching 29.3 million, a 29% increase from 2023. Transaction frequency rose by 38%, from 2.819 billion in 2023 to 3.879 billion in 2024, while transaction value grew by 23%, reaching Rp4,027 trillion. Approximately 85% of new customer accounts were opened through Livin’, and 99% of retail non-cash transactions were conducted via the platform. Kopra by Mandiri, digital service for wholesale customers, achieved significant growth, with transaction value reaching Rp22,700 trillion, a 17% increase from Rp19,450 trillion in 2023. Transaction frequency also rose by 21%, totaling 1.3 billion transactions. As of December 2024, Kopra by Mandiri had more than 249,000 users. This strong performance is the result of the bank’s customer-oriented strategies and continuous innovation launched by the bank throughout 2024.
Bank Rakyat Indonesia (BRI) – BRI provides a mobile banking application (super app), including BRIMo, to facilitate customers in conducting various banking transactions, corporate transaction services through the QLola platform, which offers Cash Management System and BRICams, Institutional Services, Business and Financial Services. The BRImo SuperApp has become increasingly popular and was used by 38.6 million customers in 2024, an increase of 22.1% from 2023 and is the most downloaded mobile banking App in Indonesia. The SuperApp also recorded more than 4.34 billion (+40.54% yoy) transactions throughout the year, with a total transaction volume of Rp5,596 trillion, an increase of 34.57% from 2023. In 2023 BRImo integrated aspects of artificial intelligence, namely chat banking service (Sabrina) and increased cross border transaction and investment capabilities.
Bank Central Asia (BCA) – Digital customer transactions at BCA are powered by two distinct mobile banking apps, BCA Mobile and myBCA. BCA Mobile continues to command loyal users particularly among the older generation, while myBCA offers more comprehensive features to meet the demands of the younger generation. In 2024, BCA claimed that its number of mobile and internet transactions have increased 5-times over the last 5 years and the number of mobile banking users by 2.8x over the same period. In total, the bank’s online channels achieved total transactions of 31.6 billion (+23.5% yoy) with a total transaction value of Rp28,261 trillion (+13.8% yoy). Digital transactions drove most of transaction growth as the transactions via the online channels accounted for 87.7% of total transactions at the bank in 2024. Additionally, the number of mobile banking users reached 30.8 million users.
Bank Negara Indonesia (BNI) – In July 2024, BNI released “wondr by BNI”, a new mobile banking app that features the latest global standards technology, offering more personalized and need-based services that assist customers in managing their finances and planning for the future. Since its launch in 2024, wondr by BNI has been downloaded more than 6.1 million times, with an increasing number of active users transacting at around 65%, surpassing its predecessor, BNI Mobile Banking. BNI’s current mobile banking application is still operating with a total of 18.1 million customers as registered users as of 2024. The bank is encouraging a gradual migration process so customers can gradually switch to wondr by BNI. BNIdirect, the bank’s digital platform for wholesale customers, also reported a 30% increase in transactions and a 20% larger transaction volume compared to 2023 and a user base of 173,000 users (+14.2% yoy).
Top Digital Banks in Indonesia
Indonesia’s digital banking sector has experienced rapid growth, driven by technological innovation, strong mobile adoption, and a national push for financial inclusion. Digital banks in Indonesia operate primarily through mobile and online platforms, providing accessible, secure, and cost-effective financial services to a diverse population, including those in underserved and remote areas. The regulatory framework for digital banks in Indonesia is governed by the Financial Services Authority regulation POJK 12/2021 which outlines the requirements for establishing and operating digital banks. As of early 2025, Indonesia is home to 17 digital banks, making it the most dynamic digital banking market in Southeast Asia.
Jenius – a digital bank launched in 2016 by Bank BTPN, an Indonesian subsidiary of SMBC Group. Jenius is a pioneer in Indonesia’s digital banking landscape. Jenius was the first bank in Indonesia to on-board new customers directly from a mobile phone. It offers a comprehensive suite of services, including savings and checking accounts, flexible fund management (Flexi Cash), bill splitting, QRIS payments, and globally accepted debit cards. Jenius is popular among young professionals and freelancers for its intuitive app, customizable savings features (Flexi Saver, Dream Saver), and robust budgeting tools. In 2023, the number of customers of Jenius digital bank reached about 5.4 million. It showed an increase of about 23% compared to the previous year.
Bank Jago – formerly PT Bank Artos Indonesia Tbk, has become a leading digital bank after its rebranding in 2020. Bank Jago is an app-only institution, backed by Gojek and integrated seamlessly with the GoPay ecosystem, offering customizable digital wallets, easy fund transfers, and third-party fintech integrations. Bank Jago has positioned itself as a leading player in serving digital-savvy users, freelancers, and the gig economy with transparent pricing and user-friendly tools. By September 2024, Bank Jago had a customer base of 14.1 million. Of these, 11.1 million were funding customers using the Jago App.
SeaBank – Owned by Singapore-based Sea Limited, the parent company of e-commerce company Shopee, SeaBank Indonesia provides digital banking services tightly integrated within the Shopee ecosystem. This integration offers seamless financial transactions for Shopee users, including savings, transfers, and bill payments. SeaBank focuses on digital-native consumers and small merchants, leveraging its ecosystem reach. Seabank is also fully integrated with QRIS, enabling users to make payments using a single QR code across various e-wallets and mobile banking apps. As of 2024, SeaBank had reached 13 million customers and had a total asset of nearly $2 billion.
blu by BCA Digital – Blu is the digital banking arm of Indonesia’s largest private bank, Bank Central Asia (BCA). Launched in July 2021, blu operates primarily online without physical branches. Blu targets millennials and Gen Z with a fully digital banking experience, offering multiple savings pockets, real-time budget tracking, and zero-fee transactions within the BCA network. As of end-2023, blu had about 1.7 million customers.
Payment Services
In Indonesia, the major digital payment services can be grouped into several principal categories including:
- Card-based payments
- Prepaid Instruments and E-money
- QR-code payments – QRIS (Quick Response Code Indonesian Standard)
- Account-based payment services, including virtual accounts
- Account-to-Account (A2A) Instant Payment Services, primarily through BI-FAST
- Buy Now, Pay Later (BNPL) services
- Digital Wallets and Mobile Payment Apps
Card Processors and PSPs
Indonesia’s payment processing ecosystem is dynamic and expansive, characterized by a blend of established banking institutions, dedicated payment service providers (PSPs), and innovative fintech companies. This ecosystem is designed to support the nation’s rapid digitalization and growing cashless transaction volumes, overseen by a robust regulatory framework led by BI and the OJK. The various entities within this landscape offer comprehensive services, including card processing, electronic payment facilitation, merchant acquiring, and value-added services such as fraud management, data analytics, and integration with local payment rails.
Issuer and Acquirer Processing
Issuer processing in Indonesia spans the entire cardholder value chain, from card issuance (physical and virtual) to transaction management, authorization, fraud mitigation, and loyalty systems. Major banks such as Bank Mandiri, BCA, BNI, and BRI, as well as digital-first banks like Bank Jago and blu by BCA Digital, provide debit, credit, and prepaid cards. These cards are enabled for EMV chip, contactless, and tokenized mobile payments (e.g., NFC via Google Pay or Apple Pay where supported). These processors are directly connected to international card schemes (Visa, Mastercard) and the domestic network (GPN), ensuring broad acceptance and compliance with PCI standards. According to Nilson, issuers in Indonesia generated $21.76 billion from 67.3 million cards in 2023.
Acquirer processing is handled by both major banks and independent PSPs. Banks such as Bank Mandiri, BCA, and BRI are dominant acquirers, offering merchant onboarding, POS terminal management, transaction routing, settlement, and risk assessment. Independent PSPs and payment gateway providers, including Xendit, Midtrans, DOKU, iPay88, and Faspay, enable seamless online and offline payment acceptance for merchants of all sizes, including support for multi-channel and cross-border transactions. Crucially, Indonesian acquirers are deeply integrated with the nation’s unique payment infrastructure, particularly QRIS (Quick Response Code Indonesian Standard). They facilitate the acceptance of QRIS payments, which unify various digital payment platforms under a single QR code, making it highly accessible for millions of merchants, especially Micro, Small, and Medium Enterprises (MSMEs).
Leading Card Processors
Gerbang Pembayaran Nasional (GPN) – Indonesia’s domestic card scheme and processing network, established to unify and streamline the country’s payment infrastructure. GPN facilitates debit card transactions, ATM withdrawals, and point-of-sale (POS) payments nationwide, ensuring interoperability across banks and payment channels. All major Indonesian banks—such as Bank Mandiri, BCA, and BRI—issue GPN debit cards, which are widely accepted at ATMs and EDCs throughout the country. The adoption of GPN is a cornerstone of Indonesia’s financial inclusion strategy, enabling millions of consumers to access digital payment services for everyday transactions.
Xendit – a leading Southeast Asia-based payment gateway with a significant presence in Indonesia. It enables businesses of all sizes, from startups to large enterprises, to accept payments from a wide array of local sources. Xendit’s comprehensive suite of services includes processing for credit and debit cards, virtual accounts, bank transfers across major Indonesian banks (e.g., BCA, Mandiri, BRI), popular e-wallets like GoPay, OVO, DANA, and ShopeePay, and even over-the-counter retail payments through outlets like Indomaret and Alfamart. Xendit is recognized for its developer-friendly APIs, robust fraud detection (including 3D Secure), and fast settlement times. It also offers advanced features such as batch disbursement APIs for mass payouts and recurring billing support, catering to diverse business needs across Indonesia’s digital economy. As of 2024, Xendit claimed to process more than 500 million transactions annually.
DOKU – Indonesia’s first electronic payment provider and the only company to hold six operating licenses from the Bank of Indonesia. These licenses enable them to offer a wide range of digital payment services, including payment gateways, domestic fund transfers, cross-border remittances, and e-wallets. DOKU leverages these licenses to provide comprehensive solutions for both businesses and consumers, facilitating online payments and other digital transactions. DOKU supports a wide range of payment methods, including major credit and debit cards, bank transfers (via networks like ATM Bersama, Prima, and Alto), and various e-wallets. DOKU’s services are utilized by over 150,000 merchants and 3 million users, focusing particularly on the e-commerce and travel sectors, while also facilitating offline transactions through integrated solutions.
Midtrans – Midtrans is one of Indonesia’s leading payment gateways and a licensed acquirer that bridges online merchants with multiple payment methods, including cards, e-wallets, and virtual accounts. As part of the Gojek ecosystem (under GoTo Group), Midtrans supports end-to-end transaction processing for thousands of businesses, from SMEs to large enterprises. Midtrans supports over 25 payment methods, including credit/debit cards (Visa, Mastercard, JCB), direct debits, bank transfers (e.g., Permata Virtual Account, Mandiri Bill Payment), and a wide array of e-wallets. The platform offers integrated fraud management, API-based checkout solutions, and full support for international and domestic cards, making it a critical enabler of e-commerce growth in Indonesia.
Card Brands and Card Types
Indonesia’s financial institutions and payment providers issue a wide variety of debit, credit, and prepaid cards, supporting both domestic and international transactions. These cards are increasingly embedded with contactless and mobile payment capabilities. Most cards are issued under national standards set by Bank Indonesia and integrated with both global schemes and the GPN.
- Debit Cards – GPN, Visa, Mastercard, JCB, UnionPay
- Credit Cards – Visa, Mastercard, AMEX, UnionPay, JCB
- Prepaid Cards – either open-loop (Visa/Mastercard/GPN) or closed-loop (from toll operators, transit companies, merchant-specific). Additionally, server-based e-money wallets (e.g., GoPay, OVO, DANA) are often treated as prepaid instruments and are widely used for transport, retail, and digital services.
- Co-Branded Cards – Banks in Indonesia frequently collaborate with airlines, retail brands, e-commerce platforms, and lifestyle companies to issue co-branded debit and credit cards. These cards offer exclusive benefits such as rewards points, discounts, travel privileges, and access to partner-specific promotions. These cards cut across sectors including Airlines (e.g., Garuda Indonesia – Citi, BNI, and Mandiri Garuda Miles cards), Retail & e-commerce (e.g., Tokopedia-Mandiri Card, Shopee-BCA Card), and Petroleum (e.g., Pertamina Mandiri Card).
Card Usage Trends
- Indonesia had about 281.4 million debit cards and 17.7 million credit cards in circulation as of end-2023, according to BIS data. Cards played a crucial role in both in-store and online purchases
- Debit cards remain widespread, accounting for 94% of cards in 2023, while credit cards accounted for about 6%
- Card payments are widely used for retail, dining, transport, e-commerce, and recurring subscription payments, supported by a growing network of point-of-sale (POS) terminals
- The expansion of domestic schemes like GPN for debit cards and Kartu Kredit Indonesia (KKI) for credit cards has strengthened local acceptance and interoperability, while international schemes (Visa, Mastercard, JCB) continue to facilitate cross-border transactions
- Contactless and mobile-enabled card payments are increasingly adopted and supported by NFC-enabled POS terminals
Advanced Payment Services
In the Yearbooks, advanced payment services are classified as online wallets, e-wallets, and/or mobile wallets with any type of payment service chosen by the wallet user to complete the payment.
PayPal – PayPal is available in Indonesia. As of end-2023, PayPal reported more than 431 million active customer accounts globally, down 0.91% from 435 million in 2022. During 2022, PayPal added approximately 8.6 million net new active accounts, ending the year with 435 million active consumer and merchant accounts. PayPal’s total payment volume increased to $1.52 trillion in 2023 (up 11.7% from $1.36 trillion in 2022) and customer engagement grew to an average of 58 transactions per active account, driving 13% growth in transactions per active account at the end of 2023.
In May 2022, PayPal Ventures invested in Modulr, an embedded payments platform for digital businesses, as part of a $108 million Series C funding round led by General Atlantic, Blenheim Chalcot, Frog Capital, and Highland Europe. Modulr delivers payments infrastructure for over 200 top-tier customers, including Revolut, Wagestream, Sage and BrightPay, and processes an annualised transaction value of more than £100 billion.
In 2023, PayPal is exploring the sale of Xoom, its international money transfer subsidiary, in a bid to cut costs and focus on high-growth business areas. Also, Stax Payments – an all-in-one payment provider for businesses – announced its partnership with PayPal in July 2023. This partnership will allow PayPal’s users to easily make payments with more than 20,000 merchants of Stax through a fast checkout process as well as new payment options such as Buy-now-pay-later solutions.
In 2023, PayPal launched its own US Dollar denominated stablecoin, PayPal USD (PYUSD), which is fully backed by US dollar deposits, short-term US treasuries, and similar cash equivalents and designed for digital payments and Web3. Eligible US PayPal customers who purchase PayPal USD will be able to transfer the token to external wallets, send person-to-person payments, fund purchases at checkouts supported by PayPal, and convert cryptocurrency holdings to and from PayPal USD.
In January 2024, PayPal launched AI-powered features to drive personalised offerings for both merchants and customers based on the data it possesses. These features include Smart Receipts (for merchants) which predicts what shoppers may want to buy next from the merchant. The merchant can then offer personalised recommendations, and cashback offers on this receipt. A major feature for users is CashPass which will use give users personalized cashback offers based on an AI analysis of their spending activity.
In March 2024, PayPal launched a complete suite of payment processing tools for online small businesses in the UK, Canada, and across more than 20 European markets. The PayPal Complete Payments package enables small businesses to accept an expanded range of payment instruments including PayPal, buy now pay later, Apple Pay, Google Pay, credit and debit cards, and alternative payment methods from around the world. By April 2024, PayPal added new features to its complete payments solution for small businesses to enable small businesses to accept a range of payments including PayPal, Venmo and PayPal Pay Later products. PayPal also gave small businesses access to four new features to help them drive payment acceptance and enhance how they run their business, and this will include Apple Pay as a checkout option.
Amazon Pay – In 2016, Amazon (US) launched its checkout payment service, Amazon Pay, enabling customers to pay for goods and services in participating third-party merchant websites. All active Amazon account holders can use Amazon login and password at the checkout. More than 50 million customers have used Amazon Pay to make purchases globally, with more than half of these coming from Amazon Prime Members.
Digital Payment Services
In the Yearbooks, digital payment services are classified as card-based payment services using EMV tokenisation security on the internet combined with HCE NFC technology in the case of contactless payments at POS terminals.
As of 2024, the Click to Pay online payment checkout service supported by international card scheme is not widely implemented in Indonesia. Click to Pay replaced the previous MasterPass and VISA Checkout services respectively. Click to Pay is a joint service between Mastercard, Visa, Discover and American Express, enabling consumers to make secure one-click payments without having to enter card details or passwords online.
Most Indonesian banks now issue NFC-enabled debit and credit cards allowing customers to make tap-to-pay transactions at contactless POS terminals widely accepted across retail, dining, and service merchants. The contactless payment limit without PIN is typically Rp 1 million per transaction set by issuers and aligned with regulatory guidance, balancing convenience with security.
Apple Pay has become one of the world’s most used digital payment methods. Its user base increased from 521.4 million to 535.8 million in 2022. By 2024, the total number of Apple Pay users was estimated at 640 million and is projected to exceed 700 million by 2027.
According to Apple’s Q2 last 2022, they saw a record of transactions with more than 1.8 billion processed during the quarter, up 40% year-over-year. This payment method is also available in over 90% of the US and 60% of stores globally.
Apple Pay is the #1 most popular digital wallet with a 92% market share, processing a global total of $6 trillion in payments in 2022 and produced a revenue of $1.9 billion.
As of 2023, Apple Pay processed 14.2% of all online consumer payments and 3.5% of all in-store purchases.
Around 51% of global iPhone users have enabled Apple Pay in 2022. There are 10 million Apple Pay-friendly contactless payment terminals worldwide.
The transactions made using Apple Pay are mostly in-store purchases, online transactions, and peer-to-peer payments. It is trendy for contactless payments, especially during the COVID-19 pandemic.
In 2024, an estimated 60.2 million Apple Pay users in the United States; projections indicate that over 75 million consumers will use Apple Pay by 2030. Putting it all together, Apple Pay is increasingly becoming an effective customer acquisition and retention feature for Apple. In June 2022, Apple Pay added Apple Pay Later, its buy-now-pay-later service, allowing users to split purchases into four equal instalments with no interest or fees. Initially launched in the US, the service is expected to roll out to other countries during 2023. In 2023, Apple launched its Card savings account from Goldman Sachs with a 4.15% annual percentage yield. Apple Wallet users can set up and manage a savings account directly from Apple Card in Wallet, with no fees, no minimum deposits, and no minimum balance requirements.
As of 2024, Apple Pay was not available in Indonesia.
Google Pay has 150 million active users across 42 global markets.
In January 2022, it was reported that the company was planning to transform Google Pay into a “comprehensive digital wallet”, following the app’s reported slow growth and the shutdown of Plex. In April, it was reported that Google was planning to revive the “Google Wallet” branding in a new app or interface and integrated with Google Pay. Google officially announced Google Wallet on May 11, 2022, at the 2022 Google I/O keynote. The app began rolling out on Android smartphones on July 18, replacing the 2018 app and co-existing with the 2020 Google Pay app in the US. While the app name itself was changed from Google Pay to Google Wallet, the service name of actually paying for things online or in-store remains “Google Pay.”.
In the US, Google Pay has over 25.2 million users. Also, Google Pay is used on nearly 800,000 websites as a secure payment gateway. Roughly 20% of all mobile purchases are made using this digital payment processor.
As of 2024, Google Pay was not available in Indonesia.
Samsung Pay is available in 29 countries worldwide and has an estimated 140 million users. Samsung Pay works with Galaxy phones, including the latest Galaxy S22. Samsung claims that its system will work with almost all point-of-sale systems: NFC, magnetic stripe and EMV (Europay, Mastercard and Visa) terminals for chip-based cards. In June 2022, Samsung Pay announced the launch of Samsung Wallet, enabling users to organise payment, loyalty, and gift cards into one app.
Samsung Pay was launched in Indonesia in 2019. In Indonesia, Samsung Pay has partnered with DANA, a prominent mobile wallet platform in Indonesia. This allows Samsung Pay users to make payments using their Samsung devices through the DANA mobile wallet app.
Overview of Cashless Payments
Credit transfers are the dominant payment instrument in Indonesia, accounting for 64.60% of all cashless payments by number and 97.74% by value in 2023. Credit transfers are mostly used for high-value financial flows. Cards (35.37% by volume and 2.13% by value), primarily debit cards, remain the second frequently used non-cash instrument by transaction volume. Cards are widely used for everyday purchases such as groceries, dining, transport.
Cheques are still used in Indonesia, though their usage has declined in recent years due to the rise of other cashless payment methods.
In 2023, there were 96.9 cashless payments per capita, composed of 34.3 card payments and 62.6 credit transfers
| 2 - Cashless Payment Transactions in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (millions) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y |
| Payment cards | 3,830.2 | 6,243.0 | 5,541.2 | 6,516.4 | 8,524.9 | 9,556.9 | 11,474.5 | 12.11% | 149.52% | 20.07% |
| Cheques issued | 2.6 | 2.4 | 1.8 | 1.5 | 1.3 | 1.1 | 1.0 | -11.30% | -55.22% | -14.84% |
| Credit transfers | 7,192.9 | 5,694.3 | 7,126.0 | 10,234.4 | 13,457.2 | 17,452.2 | 20,837.3 | 29.69% | 142.63% | 19.40% |
| Direct debits | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.00% | 0.00% | 0.00% |
| Total | 11,043.5 | 11,955.5 | 12,680.9 | 16,761.3 | 21,991.2 | 27,017.1 | 32,312.8 | 22.85% | 144.64% | 19.59% |
| Total card payments per capita | 14.5 | 23.3 | 20.5 | 23.9 | 30.9 | 34.3 | 41.2 | 10.93% | 137.27% | 18.86% |
| Total cheques issued per capita | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -12.23% | -57.42% | -15.70% |
| Total credit transfers per capita | 27.1 | 21.2 | 26.4 | 37.5 | 48.8 | 62.6 | 74.8 | 28.33% | 130.72% | 18.20% |
| Total direct debits per capita | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -1.05% | -4.91% | -1.00% |
| Total cashless payments per capita | 41.7 | 44.6 | 46.9 | 61.5 | 79.7 | 96.9 | 115.9 | 21.57% | 132.63% | 18.40% |
| Source: BIS. | ||||||||||
Exchange Rates
The Indonesian Rupiah is the domestic currency in Indonesia. The IDR depreciated against the USD from IDR 14,242.2/$ in 2019 to IDR 15,243.7/$ in 2023.
| 3 - Average Exchange Rates | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| 1 EUR in IDR | 16,803.2 | 15,835.3 | 16,627.4 | 16,920.7 | 15,625.3 | 16,479.6 |
| 1 USD in IDR | 14,242.2 | 14,145.2 | 14,562.6 | 14,307.0 | 14,853.9 | 15,243.7 |
| Source: ECB, BIS. | ||||||
Card Issuers – Overview
Indonesia’s card issuing ecosystem is diverse and rapidly evolving, with a broad range of products offered by leading banks and fintech companies to address the needs of an increasingly digital and mobile-first population. The portfolio includes credit cards, debit cards, prepaid cards, virtual cards, and co-branded cards, each tailored to specific customer segments and usage scenarios.
Major banks such as Bank Mandiri, BCA, BRI, BNI, CIMB Niaga, and Danamon, alongside digital-first players and fintechs, issue a variety of card products. These include debit cards linked to savings and current accounts, credit cards with flexible repayment options, and prepaid cards for controlled spending and gifting. Virtual cards and digital debit cards are gaining traction, especially among younger and tech-savvy consumers.
According to Nilson, issuers from Indonesia generated $21.17 billion from 67.3 million cards in 2023.
Leading issuers are Bank Central Asia, Bank Mandiri, and Bank Negara. Table 4 illustrates the card brands accepted by the leading issuers in Indonesia as of 2024.
Outlook – By mid-2024, card issuers in Indonesia face the following notable challenges:
- Competition from digital payments
- Disruption from Fintechs & Digital-only banks – BNPL, multi-currency virtual cards, co-branded digital products
- Evolving consumer expectations, particularly the digitally native younger generations who expect more personalised, seamless, and digital-first experiences
- Data Analytics and Personalisation
- Compliance with Bank Indonesia and OJK mandates, including customer protection, digital signature standards, and data localization requirements
- Implementation of enhanced security measures such as biometric authentication for mobile transactions, tokenisation and 3-D Secure 2.0 for e-commerce payments
| 4 - Leading Card Issuers in Indonesia | ||
|---|---|---|
| Domestic Issuers | Issued Card Brands | Owned by |
| Bank Central Asia | Mastercard, VISA, AMEX, JCB, UnionPay, BCA Card | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% |
| Bank Mandiri | Mastercard, VISA, JCB | Government of the Republic of Indonesia: 52%, Others: 48% |
| Bank Negara | Mastercard, VISA, AMEX, JCB | Government of the Republic of Indonesia: 60%, Others: 40% |
| Source: Nilson report, PCM research | ||
Acquiring and Acceptance in Indonesia
Indonesia’s acquiring and acceptance landscape is undergoing rapid transformation, driven by regulatory modernization, fintech innovation, and the explosive growth of digital commerce. The market is characterized by a mix of traditional bank acquirers and a dynamic ecosystem of non-bank Payment Service Providers (PSPs) and payment aggregators, enabling merchants to accept a wide variety of payment methods across both physical and digital channels.
The leading acquiring institutions in Indonesia include major banks including BCA, Bank Mandiri which provide merchant acquiring services for card payments and support a growing network of POS terminals. Alongside these, top PSPs and payment aggregators—such as Xendit, Midtrans, DOKU, Faspay, and Finpay—offer merchants seamless integration for multiple payment instruments, advanced fraud management, and value-added services.
These players enable merchants to accept a broad range of payment instruments such as:
- Card payments (Visa, Mastercard, AMEX, JCB, UnionPay, and GPN debit cards)
- QRIS-based Payments – the national QR code standard mandated by Bank Indonesia, accepted by more than 30 million merchants and major mobile banking Apps
- Real-time payment, primarily via BI-FAST
- Digital wallets (GoPay, OVO, DANA, ShopeePay, and LinkAja)
- Buy Now Pay Later (BNPL) options (Kredivo, Akulaku, GoPayLater, and Shopee PayLater)
Indonesia’s acquiring market is marked by high QRIS penetration, growing contactless adoption, and regulatory support from BI and OJK. The market is seeing increased acceptance of NFC-enabled contactless card acceptance, particular in urban areas and modern retail environments. Acquirers and PSPs play a critical role in expanding financial inclusion by enabling MSMEs and previously cash-only businesses to accept digital payments, integrating them into the formal financial ecosystem.
Table 5 illustrates the card brands accepted by the leading domestic acquirers as of 2024.
| 5 - Leading Acquirers in Indonesia | ||
|---|---|---|
| Domestic Acquirers | Acceptance Brands offered | Owned by |
| Bank Mandiri | Mastercard, VISA, JCB, UnionPay | Government of the Republic of Indonesia: 52%, Others: 48% |
| Bank Central Asia | Mastercard, VISA, AMEX, JCB, UnionPay, BCA Card | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% |
| Bank Rakyat Indonesia (BRI) | Mastercard, VISA, AMEX, JCB, UnionPay | Government of the Republic of Indonesia: 53.19%, Others: 46.81% |
| Bank Negara | Mastercard, VISA, AMEX, JCB, UnionPay | Government of the Republic of Indonesia: 60%, Others: 40% |
| Source: Nilson report, PCM research | ||
Outlook – By mid-2024, acquirers in Indonesia face the following notable challenges:
- Growing competition between a fragmented ecosystem of players including traditional bank acquirers, Digital-first fintech aggregators, and e-wallet platforms vying for merchant business.
- Navigating the evolving regulatory landscape set by the BI and OJK
- Shifting merchant and consumer preferences towards QRIS-based payments, A2A account transfers, and digital wallets driven by consumer demand for convenience and speed
- Expanding acceptance among MSMEs through digital literacy and bridging gaps in infrastructure such as internet connectivity
ATM Terminal Infrastructure
In Indonesia, ATMs are predominantly owned, operated, and managed by major banks such as Bank Mandiri, BCA, BRI, BNI, and CIMB Niaga, each maintaining its own extensive network of terminals. The ATM infrastructure is highly interoperable, facilitated by national switching networks, primarily Gerbang Pembayaran Nasional (GPN), along with ATM Bersama, PRIMA, and ALTO. These networks collectively allow customers to access their accounts, withdraw cash, check balances, transfer funds, and pay bills across ATMs of other member banks. Many ATMs now support biometric verification and offer multilingual options to cater to Indonesia’s diverse population.
All ATMs in Indonesia have migrated to EMV (chip and PIN) standards, in line with Bank Indonesia’s mandates to enhance transaction security and reduce fraud. The mandate for all ATM and debit cards to migrate to EMV standards with a six-digit PIN was set by Bank Indonesia, with the transition of existing magnetic stripe cards phased and largely completed by December 31, 2021. New debit cards have been required to be EMV-compliant since July 2017. For credit cards, all transactions made via credit cards have been required to be authenticated with a six-digit PIN since July 1, 2020.
ATM transaction fees are determined by individual banks and are influenced by network agreements and operational costs. Withdrawals at a customer’s own bank’s ATMs are typically free, while interbank transactions, such as withdrawals or balance checks at another bank’s ATM, incur a nominal fee, generally ranging from IDR 6,500 to IDR 7,500 per transaction. Fee structures are transparently displayed at the ATM before the transaction is completed and are periodically reviewed by banks to reflect changes in operational costs and customer preferences.
In 2023, there were 98,829 ATMs, up by 0.25% from 2022. There were 4.18 billion cash withdrawals (+2.42%) with a total value of IDR 3,196.8 billion (+2.54%) showing continued recovery from the decline in withdrawal volumes during the COVID-19 pandemic. There were 3,527.8 cash withdrawals per ATM per month, and the ATV per ATM cash withdrawal amounted to IDR 764,095.2, equivalent to $50.13.
| 6 - ATMs and Cash Withdrawals in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| ATM Terminals with cash function | 106,901 | 106,649 | 104,654 | 98,853 | 98,585 | 98,829 | 99,074 | 0.25% | -7.55% | -1.56% |
| Ø Number of TXs per ATM per month | 3,009.9 | 3,373.0 | 3,189.4 | 3,504.0 | 3,453.0 | 3,527.8 | 3,604.2 | 2.17% | 17.21% | 3.23% |
| Number of ATM cash withdrawals (m) | 3,861.1 | 4,316.7 | 4,005.4 | 4,156.6 | 4,085.0 | 4,183.8 | 4,285.0 | 2.42% | 8.36% | 1.62% |
| - withdrawals on Indonesian cards (m) | 3,861.1 | 4,316.7 | 4,005.4 | 4,156.6 | 4,085.0 | 4,183.8 | 4,285.0 | 2.42% | 8.36% | 1.62% |
| Value of ATM cash withdrawals (IDR bn) | 2,846,636.4 | 3,214,497.1 | 2,998,322.7 | 3,150,375.7 | 3,117,722.8 | 3,196,804.0 | 3,156,260.5 | 2.54% | 12.30% | 2.35% |
| - withdrawals on Indian cards (IDR bn) | 2,846,636.4 | 3,214,497.1 | 2,998,322.7 | 3,150,375.7 | 3,117,722.8 | 3,196,804.0 | 3,156,260.5 | 2.54% | 12.30% | 2.35% |
| ATV per ATM withdrawal (IDR) | 737,258.38 | 744,657.11 | 748,567.48 | 757,916.93 | 763,221.22 | 764,095.22 | 769,578.69 | 0.11% | 3.64% | 0.72% |
| # ATM Terminals per 1m capita - Indonesia | 403.4 | 397.8 | 387.3 | 362.5 | 357.5 | 354.6 | 355.5 | -0.80% | -12.09% | -2.54% |
| Source: BIS. | ||||||||||
BCA reported the largest ATM network in Indonesia in 2024 with 19,543 ATMs, BNI reported 13,388 while Bank Mandiri and BRI reported 12,892 and 10,662 ATMs respectively.
POS Terminal Infrastructure
Indonesia’s Point-of-Sale (POS) terminal ecosystem is experiencing rapid growth, driven by increasing digitalization and a vast consumer base. This evolving infrastructure is supported by a dynamic network of banks, payment service providers, and technology vendors that provide both hardware and software solutions to merchants across various sectors. Merchants typically acquire POS terminals through their acquiring banks or through independent service providers and payment aggregators. These providers offer a variety of acquisition models, including outright purchase and rental agreements, catering to different business needs. The hardware and software for these terminals are supplied by a mix of international and local vendors, ensuring a diverse range of solutions are available to meet the specific requirements of Indonesian businesses, from small and medium-sized enterprises (SMEs) to large corporations.
The country’s payment infrastructure is undergoing significant modernization, driven by national strategies like the Indonesia Payment System Blueprint 2025 (IPS 2025), which prioritizes integration, interoperability, and responsiveness to the digital economy. This includes a strong regulatory focus on payment security, financial inclusion, and technological innovation, with the aim of supporting economic growth and expanding digital payment acceptance across urban and rural markets.
Contactless payments are increasingly embedded in the POS experience, particularly in urban areas. Most modern terminals support NFC-enabled transactions using contactless cards, mobile wallets, and wearable devices. This shift is largely driven by a combination of consumer preference for faster transactions, the proliferation of digital wallets, and concerted efforts by issuers and acquirers to modernize their infrastructure in line with Indonesia’s digital payments blueprint.
Mobile POS (mPOS) and lightweight terminal solutions are gaining traction among micro, small, and medium enterprises (MSMEs), especially in informal trade sectors and dynamic retail settings such as marketplaces and events. These devices are instrumental in expanding electronic payment acceptance beyond traditional brick-and-mortar setups.
Indonesia’s POS landscape is further enriched by deep integration with QRIS (Quick Response Code Indonesian Standard), the national QR code standard developed by Bank Indonesia. QRIS enables interoperability across banks and e-wallets, allowing merchants to accept a wide range of QR-based payments through a single unified interface. This has accelerated digital payment adoption among smaller merchants, promoting financial inclusion and supporting the national agenda for a less-cash society.
According to Bank Indonesia, in 2023, there were 2,015,374 POS terminals, a growth of 17.76% from 2022. There were 1.80 billion POS payments (+13.96%) with a total value of IDR 897.00 billion (+18.54% vs 2022). There were 74.6 payments per POS terminal per month, and the ATV per POS payment accounted for IDR 497,214.74 ($32.62).
| 7 - POS Terminals in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| POS terminals (EDC Machines) | 1,045,903 | 1,070,960 | 1,362,234 | 1,761,930 | 1,711,413 | 2,015,374 | 2,373,321 | 17.76% | 92.69% | 14.02% |
| Ø Number of TXs per POS per month | 160.8 | 136.7 | 108.5 | 83.7 | 77.1 | 74.6 | 72.2 | -3.23% | -53.62% | -14.24% |
| Number of POS payments (m) | 2,018.60 | 1,756.46 | 1,773.06 | 1,768.95 | 1,583.12 | 1,804.06 | 2,055.83 | 13.96% | -10.63% | -2.22% |
| - 'On Us' transactions (m) | 1,652.50 | 1,387.11 | 1,530.71 | 1,479.79 | 1,153.13 | 1,247.20 | 1,221.40 | 8.16% | -24.53% | -5.47% |
| - 'Off Us' transactions (m) | 366.10 | 369.35 | 242.34 | 289.16 | 429.99 | 556.85 | 524.29 | 29.50% | 52.10% | 8.75% |
| Value of POS payments (IDR bn) | 1,122,055.82 | 918,636.20 | 522,531.82 | 604,415.79 | 756,727.14 | 897,003.69 | 1,063,283.68 | 18.54% | -20.06% | -4.38% |
| - 'On Us' transactions (IDR bn) | 773,615.65 | 590,819.22 | 349,364.53 | 409,805.14 | 454,213.06 | 509,807.85 | 551,830.70 | 12.24% | -34.10% | -8.00% |
| - 'Off Us' transactions (IDR bn) | 348,440.17 | 327,816.98 | 173,167.29 | 194,610.65 | 302,514.08 | 387,195.84 | 319,545.23 | 27.99% | 11.12% | 2.13% |
| ATV per POS payment (IDR) | 555,859.47 | 523,004.98 | 294,706.64 | 341,681.27 | 477,998.55 | 497,214.74 | 517,203.44 | 4.02% | -10.55% | -2.21% |
| # POS Terminals per 1m capita - Indonesia | 3,946.6 | 3,995.0 | 5,041.5 | 6,461.5 | 6,205.9 | 7,231.4 | 8,515.8 | 16.53% | 83.23% | 12.88% |
| Source: BIS, Bank Indonesia. | ||||||||||
Mobile Payments – Overview
Indonesia’s mobile payment ecosystem has experienced rapid growth, supported by high smartphone penetration, increasing internet access, and national efforts to drive digital financial inclusion. In 2023, 125% of Indonesians have subscribed to a mobile phone according to the International Telecommunication Union (ITU). Many Indonesians own more than one mobile phone and 77% own a smartphone. By 2024, an estimated 212 million Indonesians had internet access, implying a 75% internet penetration. The expansion of 4G coverage and ongoing 5G rollout, especially in urban centers, has further enabled digital financial inclusion.
Indonesia’s digital transformation is driven by coordinated efforts from Bank Indonesia, the Financial Services Authority (OJK), and the Ministry of Communication and Informatics. Key regulatory initiatives such as the National Non-Cash Movement and the Indonesia Payment System Blueprint 2025 (IPS 2025) have promoted interoperability, security, and innovation across the payment ecosystem. Indonesia’s mobile payment infrastructure is anchored by several regulatory and technological enablers including QRIS, BI-FAST, growth in mobile banking Apps and e-wallet ecosystems as well as the increasing use of national digital identity (Dukcapil integration) for e-KYC and remote onboarding processes.
The adoption of real-time payments is accelerating through BI-FAST, which supports instant fund transfers via mobile banking Apps, seamless connectivity between participating banks, e-wallets, and third-party fintechs, as well as lower cost infrastructure that supports interoperability and digitisation. In 2023, BI reported a significant decline (-91.83% vs 2022) in phone banking transactions to 94,600 transactions in Indonesia while mobile banking transactions saw an increase of 47.63% to 12.3 billion transactions. Internet banking transactions also inched higher by 8.82% to 3.7 billion transactions indicating a continued switch to digital payments in Indonesia.
| 8 - Digital Payments in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Number of Phone Banking Transactions ('000) | 2,281.0 | 2,192.6 | 1,919.2 | 498.4 | 1,158.2 | 94.6 | 47.1 | -91.83% | -95.85% | -47.08% |
| Value of Phone Banking Transactions (IDR bn) | 23,032.3 | 92,368.5 | 191,599.9 | 32,861.2 | 3,131.8 | 1,475.8 | 1,073.9 | -52.88% | -93.59% | -42.28% |
| Value per Transaction (IDR) | 10,097,529.9 | 42,127,920.8 | 99,833,029.6 | 65,931,400.5 | 2,703,999.2 | 15,593,123.6 | 16,336,399.40 | 476.67% | 54.43% | 9.08% |
| Number of SMS/Mobile Banking Transactions (m) | 2,855.6 | 2,360.1 | 3,427.1 | 5,534.2 | 8,354.9 | 12,334.0 | 19,550.66 | 47.63% | 331.93% | 33.99% |
| Value of SMS/Mobile Banking Transactions (IDR bn) | 2,328,703.4 | 3,522,491.4 | 4,770,122.3 | 7,730,865.0 | 9,995,238.5 | 14,378,353.0 | 23,077,473.36 | 43.85% | 517.44% | 43.92% |
| Value per Transaction (IDR) | 815,498.92 | 1,492,521.57 | 1,391,882.61 | 1,396,914.12 | 1,196,327.22 | 1,165,745.99 | 1,135,946.50 | -2.56% | 42.95% | 7.41% |
| Number of Internet Banking Transactions (m) | 2,238.7 | 1,151.8 | 1,531.8 | 2,237.8 | 3,409.5 | 3,710.2 | 2,453.66 | 8.82% | 65.73% | 10.63% |
| Value of Internet Banking Transactions (IDR bn) | 20,241,522.6 | 23,764,896.5 | 22,585,573.3 | 33,089,391.6 | 42,550,582.3 | 43,945,073.9 | 64,788,640.21 | 3.28% | 117.10% | 16.77% |
| Value per Transaction (IDR) | 9,041,841.42 | 20,633,044.28 | 14,744,090.77 | 14,786,810.23 | 12,479,995.57 | 11,844,407.66 | 11,241,189.30 | -5.09% | 31.00% | 5.55% |
| Source: Bank Indonesia. | ||||||||||
According to WorldPay, digital wallets are the leading payment method for online transactions led primarily by domestic wallets such as DANA, GoPay and OVO and are mostly funded via bank accounts. Digital wallets accounted for 42% of e-commerce payments in 2024. When shopping in store, WorldPay reported that A2A payments leveraging the popular QRIS system accounted for 21% of POS transaction value in 2024 and is forecast to be the leading payment method at POS in 2030 with 38% of transaction value.
| 9 - Internet Use in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Households with internet access | 66.2% | 73.8% | 78.2% | 82.1% | 86.5% | 87.1% | 87.6% | 0.64% | 31.52% | 5.63% |
| Households owning cellular phones | 90.8% | 90.5% | 92.4% | 89.0% | 85.8% | -3.61% | NA | NA | ||
| Individuals who own a mobile cellular telephone (%) | 62.4% | 63.5% | 62.8% | 65.9% | 67.9% | 67.3% | 66.7% | -0.87% | 7.82% | 1.52% |
| Individuals who used the internet (%) | 39.9% | 47.7% | 53.7% | 62.1% | 66.5% | 69.2% | 72.1% | 4.11% | 73.46% | 11.64% |
| Mobile subscribers per 100 inhabitants | 119.6% | 126.6% | 130.8% | 133.7% | 114.9% | 125.0% | 126.1% | 8.79% | 4.51% | 0.89% |
| Source: ITU, BPS Statistics indonesia. | ||||||||||
Indonesia’s mobile payment landscape is characterized by key initiatives and solutions including:
- BI-FAST – the national real-time A2A payment infrastructure enabling 24/7 instant transfers
- Mobile wallets (E-wallets) with major players including GoPay, OVO, ShopeePay, DANA and LinkAja
- QRIS – the national QR code standard
- Buy Now, Pay Later (BNPL) and Embedded Finance
- Mobile banking applications of Banks in Indonesia with real-time payment features
- Card-based mobile payments – Contactless card tokenization for tap-to-pay via NFC-enabled phones
Instant Payments
Indonesia’s instant payment ecosystem is a cornerstone of its accelerating digital economy, characterized by robust infrastructure, strategic regulatory initiatives by Bank Indonesia, and growing adoption across consumers, businesses, and government entities. Instant payments in Indonesia facilitate real-time fund transfers, operating continuously to provide high levels of convenience, speed, and efficiency.
Launched in December 2021, BI-FAST is Indonesia’s national real-time payment infrastructure developed by Bank Indonesia as part of the Indonesia Payment System Blueprint 2025. BI-FAST enables instant, round-the-clock retail payments and is accessible through mobile banking, internet banking, and physical bank channels. BI-FAST is one of the world’s largest and most modernized real-time payments initiatives, incorporating 135 banks, multi-tenant aggregators and non-bank participants.
BI-FAST enables transfers using proxy addresses such as mobile numbers or email addresses, simplifying the transaction process. The system also integrates robust security features, including real-time fraud detection, Anti-Money Laundering (AML), and Countering Financing of Terrorism (CFT) controls. In 2024, retail transactions processed via BI-Fast grew by an impressive 62.4% from 2023, amounting to 3.4 billion transactions worth IDR 8.9 trillion.
Central Bank Digital Currencies, Cryptocurrency Products
In 2023, Indonesia’s payment ecosystem was characterized by significant advancements in digital infrastructure, a discernible shift away from traditional cash usage, a proactive regulatory environment fostering financial technology innovation, and an active exploration of Central Bank Digital Currency (CBDC) by Bank Indonesia.
Central Bank Digital Currencies (CBDC) – The Digital Cash Challenge
Central bank digital currency (CBDC), also called digital fiat currency or digital base money, is a digital currency issued by a national central bank (NCB), rather than by a commercial bank. It is also a liability of the NCB and denominated in the sovereign currency, as is the case with physical banknotes and coins.
All CBDCs are under the authority of the respective national central bank, and they are part of the domestic cash payment ecosystem. Rather than a new currency, CBDC is a form of central bank electronic money that could be used by households and businesses to make payments. In addition, most CBDC implementations will likely not use or need any sort of distributed ledger such as a blockchain.
Unlike “retail CBDC,” which is generally designed as a central bank liability universally accessible to individuals and businesses within a jurisdiction’s financial system, “wholesale CBDC” refers to a digitized central bank liability designed for sizable (generally interbank) transactions, and for which access is limited to certain financial institutions.
National Central Banks (NCBs) have been providing trusted money to the public for hundreds of years as part of their public policy objectives. Trusted money is a public good. It offers a common unit of account, store of value and medium of exchange for the sale of goods and services and settlement of financial transactions. Providing cash for public use is an important tool for central banks. Yet the world is changing.
Even before COVID-19, cash use for payments was declining fast and convenient digital payments have grown enormously in volume and diversity. To evolve and pursue their public policy objectives in a digital world, central banks are actively researching the pros and cons of offering a digital currency to the public, a “general purpose” CBDC.
Central banks’ interest in CBDC has increased as a potential means of delivering their public policy objectives. Profound, ongoing changes across finance, technology and society, as well as the recent COVID-19 crisis, provided additional impetus for the research of, and experimentation related to, CBDCs.
CBDC is a national digital currency issued by the central bank that is expected to replace or coexist with fiat money and hold the same value. Mobile money, on the other hand, utilises existing commercial banking-based accounting to manage customer wallet balances based on an exchange with cash or lines of credit and loans.
CBDC is a direct liability on the central bank as it is the main issuer of the currency, whereas digital money is the liability of commercial banks and other authorised financial institutions using funds on account. Although some implementation approaches propose that CBDC can be implemented in either an indirect or hybrid form, its liability remains on the respective national central bank.
Background on CBDC Evolution
In October 2020, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, Sveriges Riksbank, the Swiss National Bank and the Bank for International Settlements (BIS) published a report, Central bank digital currencies: foundational principles and core features, identifying the foundational principles necessary for any publicly available CBDC to help central banks meet their public policy objectives.
The report focused on a publicly available “general purpose” CBDC (a digital payment instrument, denominated in the national unit of account, that is a direct liability of the central bank).
A “wholesale” CBDC, restricted to financial institutions, is also an active area of exploration, notes the report, for central banks but one that carries different opportunities, challenges, and risks. The report explored the use cases for, and challenges and opportunities arising from, the possible issuance of a general purpose CBDC.
In September 2021, the same seven central banks and the BIS followed up with the publication of a new set of reports exploring the potential of retail CBDCs, including policy options and practical implementation issues. While none of the central banks has yet decided to proceed with a retail CBDC, they recognise such an instrument would have wide-ranging implications. Delivering on the future needs of consumers would require systems that encourage innovation, choice and competition among a diverse mix of intermediaries.
- The first report explores how private-public collaboration and interoperability can be designed into CBDC systems to achieve this objective. In particular, policies about privacy and access to payment data would be key design elements in order to maintain public trust.
- The second report focuses on how a CBDC could best serve people and businesses in a fast-changing technological landscape. Lessons from previous payment innovations compiled in the report, show that success often requires harnessing network effects and not requiring users to obtain new devices. Nonetheless, there would not be a “one-size-fits-all” solution and CBDC adoption strategies would need to consider multiple perspectives through public consultations.
- The third report outlines the possible impact of CBDC issuance on banking systems, in terms of intermediation capacity and overall resilience. Preliminary analysis highlights the importance of allowing the financial system time to adjust and the flexibility to use safeguards to influence CBDC adoption.
BIS reported that a 2021 survey of central banks found that “86% are actively researching the potential for CBDCs, 60% were experimenting with the technology and 14% were deploying pilot projects.
The People’s Bank of China (PBoC) is piloting a ‘digital yuan’, known as e-CNY, in various cities, often in association with major sporting events, such as the Winter Olympics.
The ECB published a paper on the potential of a “digital euro” in October 2020, exploring the “benefits and risks” of such an initiative. It completed a public consultation in January 2021 and a series of focus groups in December 2021. Its investigation stage is expected to continue until October 2023, after which the ECB “will decide whether to start developing a digital euro.”
The US Federal Reserve reported in February 2022 that while it has made no decisions about “whether to pursue or implement” a CBDC, it was “exploring the potential benefits and risks of CBDCs from a variety of angles and was inviting public feedback on discussion papers.
The Bank of Japan said in October 2020 that it had no plans for a CBDC and was committed to maintain the cash system as long as there was public demand for it. It nevertheless intended to explore technical feasibility through a proof of concept, consider institutional arrangements and coordinate approaches with domestic and international stakeholders. In 2023, the Bank of Japan (BOJ) has announced that it will begin a pilot for its digital yen with commercial financial institutions. In February 2023, Bank of Japan has embarked on a CBDC trial.
While CBDCs are still in experimental phases across major economies, 2024 has seen increased momentum towards real-world implementation, with several countries, notably China and the ECB, moving closer to full-scale rollouts. Public-private collaboration, technological innovation, and privacy concerns remain central to future CBDC development. Central banks worldwide continue to balance innovation with maintaining public trust and financial stability in this rapidly evolving space.
Global Status of CBDCs
Most National Central Banks (NCBs) are involved in different stages of a CDBC project. Especially, the NCBs have different views on which kind of CDBC they would intend to launch as a digital currency:
- A “retail-CBDC” designed as an NCB liability universally accessible to individuals and businesses within a jurisdiction’s financial system.
- A “wholesale-CBDC” that refers to a digitized central bank liability designed for sizable (generally interbank) transactions, and for which access is limited to participating financial institutions.
- Both a “retail-CDBC” and a “wholesale-CDBC”.
As of 2023, the global CDBC status reveals that four central banks – Nigeria (e-Naira), Eastern Caribbean (D-Cash), Jamaica (JAM-DEX), and the Bahamas (Sand Dollar) – have introduced a domestic CBDC scheme.
Six countries have launched a CDBC pilot: France, Canada, China, India, Saudi Arabia, and Ghana.
The NCBs of most other countries are involved in either a CDBC proof-of-concept phase – including Norway, Hungary, and Sweden – or they are still in a CDBC research stage.
So far, Ecuador is the only country that has cancelled its CBDC ambitions, Dinero electronico.
CBDC and Indonesia
Indonesia is taking active steps in the exploration of a CBDC through “Project Garuda”, a strategic initiative led by Bank Indonesia. The project reflects the country’s commitment to modernizing its monetary system, supporting payment innovation, and strengthening national monetary sovereignty in the digital era. Launched in 2022, Project Garuda aims to modernize Indonesia’s payment system by leveraging digital technologies to enhance efficiency, security, financial inclusion, and economic sovereignty.
Bank Indonesia successfully completed the Proof of Concept (PoC) for the wholesale Digital Rupiah in late 2024. This phase tested the technical feasibility of using distributed ledger technology (DLT) platforms to create a secure, scalable, and interoperable wholesale CBDC system. The PoC demonstrated that DLT-based solutions can meet Indonesia’s business and technical requirements, including transaction security, system performance, and integration with existing financial infrastructure.
While the wholesale Digital Rupiah is the immediate focus, Indonesia is also exploring the potential for a retail CBDC to serve everyday consumer and business transactions. This includes assessing technical, policy, and regulatory considerations such as privacy, user experience, and interoperability with existing payment systems like QRIS and BI-FAST.
Although Project Garuda originally emerged in response to Bank Indonesia’s growing concerns over the rapid expansion of cryptocurrencies. Like many central banks worldwide, BI saw the rise of decentralized cryptocurrencies as a potential threat to monetary policy transmission and financial stability. The introduction of the Digital Rupiah was expected to counterbalance the influence of cryptocurrencies and safeguard the financial system. However, this sense of urgency has since diminished due to two key factors. First, BI has already prohibited the use of cryptocurrencies as a legal payment instrument in Indonesia, restricting their role to investment assets. As a result, cryptocurrencies no longer pose a direct threat to the country’s monetary system. Second, the high volatility of crypto assets has reduced their appeal, confining demand primarily to high-risk investors. Regardless, the Digital Rupiah is viewed as a strategic innovation to future-proof Indonesia’s financial system and maintain the relevance of the national currency in a digital economy.
Pros and Cons of CBDCs
According to research by the Bank of England, BIS, and by several other central banks, the benefits of CBDCs include supporting increased innovation in the payment system with:
- ‘Programmable money’ that enables transactions to occur according to certain conditions, rules or events
- Automatic payment of taxes at the POS
- Allowing the government to make direct transfers to individuals
- Automatic payment of dividends directly to shareholders
- Electricity meters paying suppliers directly based on power usage
- Making ‘micropayments’ at much lower costs
- A more reliable and attractive alternative to stablecoins (see Stablecoins section below)
- A well-designed CBDC could help to retain some of the beneficial characteristics of cash that current electronic bank deposits don’t. A CBDC might focus more on promoting privacy or support financial inclusion
- CBDCs could facilitate better cross-border payments systems by linking CBDCs to speed up cross-border payments
- More effective transmission of monetary policy
- Changes in base rates could be passed onto consumers more quickly and efficiently.
Possible challenges related to use of CBDCs could include:
- Disintermediation and reducing the banking sector’s balance sheet – When someone converts bank deposits to CBDC, they reduce the size of the commercial bank’s overall holdings. This process of disintermediation is an inevitable consequence of introducing a CBDC. If banks’ balance sheets were to reduce too much and too quickly, they might need to seek funding from elsewhere. This could push up the cost of their lending to businesses and consumers.
- Risk of bank runs – introducing a CBDC could potentially make it easier for runs on the banking system to occur. At the moment, such factors as the difficulty of storing large amounts of cash limit such risks. A CBDC would remove many of those limits.
- Offline usage – the CBDC payment system would probably require a connection to the central ledger, which may not always be available. While it might still be possible to initiate a payment, the recipient would have to trust the sender to have sufficient funds. There is also a risk of someone attempting to spend the same money twice.
- Cyber-attack – BIS warns that a successful attack on a CBDC system could quickly threaten many users, as well as their faith in the system. This is because there would be so many ‘endpoints’ in a linked, centralised system. This would make a CBDC system a critical piece of national infrastructure.
- Data privacy – Fully anonymous CBDC are unlikely to be permitted due to the need to comply with know-your-customer and anti-money laundering checks. A CBDC would inevitably allow more tracking and less anonymity than cash does. BIS suggests that “a key national policy question will be deciding who can access which parts of [this data] and under what circumstances”.
Unregulated Cryptocurrency Products – Background
Regulators and national central banks are challenged by unregulated independent cryptocurrency products. Whereas CBDCs are under the authority of the central bank, almost all cryptocurrencies are decentralised, and not controlled or managed by any central authority.
Obviously, financial market authorities and the national central banks are not in favour of unregulated cryptocurrency products, and they see them as a systematic risk for the financial system. Their intention to regulate the respective cryptocurrency exchange platforms has gained momentum.
Cryptocurrencies, originally designed as a store of value, are digital assets, developed and maintained on decentralised blockchains, and they can be used as a medium of exchange or payment method. Bitcoin and Ethereum are the most popular forms of cryptocurrencies worldwide used by consumers and businesses for transactions.
As of 2022, over 400 million people worldwide used cryptocurrencies, with merchants and businesses in more sectors accepting it as a form of payment. The major payment schemes VISA and Mastercard, PayPal and along with a growing number of financial institutions, have launched services allowing consumers to purchase or use cryptocurrencies for a range of applications.
According to a 2022 Deloitte survey, around two-thirds (64%) of surveyed merchants indicated that their customers have significant interest in using digital currencies for payments, and 83% expect consumer interest in digital currencies for payments to increase or significantly increase over the next 12 months.
In addition, merchants are motivated by the prospect of enabling immediate access to funds (40% of respondents), taking advantage of blockchain-based innovations in decentralised digital finance (39%), and allowing in-house management of the revenue cycle/treasury/finance department (39%).
Over half (54%) of large retailers (with revenues of $500 million and up) have invested more than $1 million on enabling digital currency payments, while only 6% of small retailers (with revenues of under $10 million) did so.
A 2022 survey from Checkout.com found a sharp rise in people wanting to use cryptocurrencies as a means of payment, with 40% of 18-35-year-old consumers citing their desire to experiment with using crypto as a payment method, up from less than 30% in 2021. Meanwhile, over 80% of businesses say offering crypto has attracted new customers, led to a decrease in chargebacks, while just over 60% have seen higher authorisation rates accepting crypto payments.
A recent report by Triple-A put cryptocurrency ownership in Europe at around 49 million people.
Stablecoins
Stablecoins are a type of asset-backed cryptocurrency, whose value is typically pegged to the value of an underlying asset such as USD, GBP, or commodities like gold. Stablecoins are partially backed by real assets, and they are designed to have a value pegged to real-world assets, therefore avoiding the extreme volatility that affects cryptocurrencies.
Stablecoins offer the potential benefits of cryptocurrencies, like transparency, security, immutability, and decentralised control, while maintaining the guarantees and stability that come with using fiat currency. Stablecoins have potential to be used in cross-border payments, providing a secure, online environment for peer-to-peer (P2P) transactions to take place without needing decentralised cryptocurrencies or to pay fees to convert money into local currencies.
As of 2024, there were more than 200 stablecoins globally, comprising a market that’s worth approximately $174 billion.
A survey of central banks in January 2021 found that two-thirds of respondents are actively researching the potential impact of stablecoins on financial stability. However, some regulators in the US and China, consider stablecoins as a potential serious risk to financial systems. The risk is especially high with centralised coins, such as those backed by fiat and issued by private organisations, as economic power would be disproportionately concentrated on a single entity.
The widespread use of stablecoins in payment platforms could also pose a systemic risk, in relation to the validation and confirmation of stablecoin transactions which could interfere with payment systems. If stablecoin users couldn’t access money in their e-wallets and businesses couldn’t receive payments, economic activity would be greatly disrupted. However, these risks have not deterred major institutions like JP Morgan and VISA to explore stablecoin use cases via partnerships and internal R&D.
Tether As of 2024, Tether remains the largest stablecoin globally, holding a market share of over 50%. This dominance is driven by its widespread usage and liquidity in crypto markets. Its nearest competitors include USD Coin (USDC), Binance USD (BUSD), and decentralized stablecoins like DAI, although Tether’s market share far exceeds them. Recent reports have shown Tether’s involvement in major financial markets and even Bitcoin mining, further reinforcing its stronghold on the crypto landscape.
Regarding Facebook’s Diem (formerly Libra) project, it was officially abandoned. Diem’s assets were sold off to Silvergate Capital in early 2022, marking the end of the initiative that once aimed to create a globally accessible digital currency. Regulatory pressures and internal challenges led to the dissolution of the project.
Market Size and Dynamics
Cards in Issue
Based on BIS figures, there were 299.20 million bank cards in Indonesia by end-2023, up by 11.37% from 2022. Debit cards amounted to 94.08% of the card base while credit cards accounted for 5.92%. In total, there were 3.98 cards per capita at end 2023. According to WorldPay, credit and debit/prepaid cards accounted for 6% each of e-commerce payments as of 2024.
In total, there were 17.72 million (+3.07%) credit cards in circulation in 2023, and debit cards totalled 281.47 million (+11.93%).
| 10 - Cards Issued in Indonesia | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (000s) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Cards with ATM (cash) function | 178,604.23 | 200,912.41 | 230,547.31 | 242,815.61 | 273,247.19 | 303,500.46 | 330,382.7 | 11.07% | 69.93% | 11.19% | |
| Cards with a payment function | 169,757.22 | 191,932.53 | 221,042.86 | 237,813.47 | 268,662.87 | 299,201.14 | 332,838.1 | 11.37% | 76.25% | 12.00% | |
| - Cards with a debit function | 152,482.09 | 174,445.47 | 204,102.82 | 221,299.85 | 251,463.99 | 281,473.66 | 315,064.7 | 11.93% | 84.59% | 13.04% | |
| - Cards with a credit function | 17,275.13 | 17,487.06 | 16,940.04 | 16,513.62 | 17,198.88 | 17,727.48 | 17,773.4 | 3.07% | 2.62% | 0.52% | |
| Cards total | 169,757.22 | 191,932.53 | 221,042.86 | 237,813.47 | 268,662.87 | 299,201.14 | 332,838.1 | 11.37% | 76.25% | 12.00% | |
| - Cards with e-money function | 167,205.58 | 292,299.32 | 432,281.38 | 575,323.42 | 730,701.04 | 809,783.31 | 315,064.7 | 10.82% | 384.30% | 37.10% | |
| - thereof contactless cards | 167,205.58 | 292,299.32 | 432,281.38 | 575,323.42 | 730,701.04 | 809,783.31 | 853,603.9 | 10.82% | 384.30% | 37.10% | |
| Payment cards per capita | 1.27 | 1.81 | 2.42 | 2.98 | 3.62 | 3.98 | 1.19 | 9.81% | 212.96% | 25.63% | |
| Source: BIS, Bank Indonesia | |||||||||||
Card Use
Indonesia was classified as a high-cash use market according to WorldPay’s Global Payments report with a rate of cash use comparably high at 38% of 2024 POS transaction value. However, that rate has been slashed in half from 77% in 2019. Cash on delivery continues to play an important role, with all cash methods accounting for 11% of 2024 e-commerce payments. Credit, debit and prepaid cards combined to account for 12% of e-commerce and 21% of POS transaction value in 2024.
The use of cards in the country is growing at a gradual pace. Debit card payments have shown a compound annual growth rate of 18.97% between 2019 and 2023, and they accounted for 77.99% of card payments by number and 58.85% by value in 2023. Credit card payments grew by a modest 3.30% in the same period and accounted for 22.01% of card payments by number and 41.15% by value in 2023.
In 2023, Indonesian cards accounted for 1.76 billion payments (+10.31%) with a total value of IDR 567.79 billion, up by 3.50% from 2022. The ATV per card payment was IDR 546,947.35 ($35.88), and there was an average of 5.9 payments per card per year.
| 11 - Payments with Indonesian Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Cards with a payment function | 169,757 | 191,933 | 221,043 | 237,813 | 268,663 | 299,201 | 332,838 | 11.37% | 76.25% | 12.00% |
| Ø payments per card per year | 5.3 | 5.3 | 4.1 | 4.5 | 6.0 | 5.9 | 6122.2 | -0.95% | 10.29% | 1.98% |
| Ø payment value per card per year | Rp3,525,508.14 | Rp3,467,626.39 | Rp2,335,911.82 | Rp2,413,061.04 | Rp3,217,050.84 | Rp3,224,611.57 | Rp2,832,457.47 | 0.24% | -8.53% | -1.77% |
| Payments (m) | 907.5 | 1,016.3 | 915.5 | 1,066.0 | 1,599.1 | 1,764.0 | 2,037.7 | 10.31% | 94.38% | 14.22% |
| - with debit cards (m) | 577.3 | 676.0 | 647.3 | 788.9 | 1,261.6 | 1,375.7 | 1,636.6 | 9.04% | 138.29% | 18.97% |
| - with credit cards (m) | 330.1 | 340.2 | 268.2 | 277.1 | 337.5 | 388.3 | 401.1 | 15.05% | 17.60% | 3.30% |
| Value of payments (IDR bn) | 598,480.47 | 665,550.30 | 516,336.62 | 573,858.42 | 864,302.12 | 964,807.46 | 942,749.76 | 11.63% | 61.21% | 10.02% |
| - with debit cards (IDR bn) | 293,279.15 | 332,905.55 | 284,783.51 | 336,109.91 | 548,606.48 | 567,795.92 | 647,999.22 | 3.50% | 93.60% | 14.13% |
| - with credit cards (IDR bn) | 305,201.32 | 332,644.75 | 231,553.11 | 237,748.51 | 315,695.64 | 397,011.54 | 294,750.55 | 25.76% | 30.08% | 5.40% |
| ATV per card payment | Rp659,500.05 | Rp654,886.14 | Rp563,993.51 | Rp538,335.29 | Rp540,490.15 | Rp546,947.35 | Rp462,654.31 | 1.19% | -17.07% | -3.67% |
| Source: BIS, Bank Indonesia | ||||||||||
Card Use Per Capita
Indonesia’s rate of card ownership and usage remains significantly lower than that of the regional leaders. While debit cards are more widespread, credit and charge card usage are still developing, though the market is experiencing steady growth. In 2023, there were 4.94 debit card payments per capita (+7.90%) while credit card use was 1.39 payments per capita (+13.84%). In total, there were 6.33 payments per capita.
| 12 - Card Payments Per Capita in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Debit card payments | 2.18 | 2.52 | 2.40 | 2.89 | 4.57 | 4.94 | 5.3 | 7.90% | 126.59% | 17.77% |
| Debit card value | Rp77.70 | Rp87.79 | Rp72.37 | Rp86.15 | Rp133.93 | Rp133.65 | Rp148.96 | -0.21% | 72.00% | 11.46% |
| Credit card payments | 1.2 | 1.3 | 1.0 | 1.0 | 1.2 | 1.39 | 1.2 | 13.84% | 11.83% | 2.26% |
| Credit card value | Rp80.86 | Rp87.72 | Rp58.85 | Rp60.94 | Rp77.07 | Rp93.45 | Rp96.19 | 21.26% | 15.57% | 2.94% |
| Total card payments | 3.4 | 3.8 | 3.4 | 3.9 | 5.8 | 6.33 | 6.5 | 9.15% | 84.84% | 13.07% |
| Total card value | Rp158.56 | Rp175.52 | Rp131.22 | Rp147.10 | Rp210.99 | Rp227.10 | Rp245.16 | 7.63% | 43.22% | 7.45% |
| Source: calculated using BIS data, population figures and exchange rates. | ||||||||||
Debit Card Use
In 2023, there were 1.37 billion debit card payments (+9.04%) with a total value of IDR 567.79 trillion (+3.50% vs 2022). The ATV per debit card payment accounted for IDR 412,724.87 ($27.08), and there were 4.9 payments per debit card per year.
| 13 - Payments with Indonesian Debit Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Debit Cards | 152,482 | 174,445 | 204,103 | 221,300 | 251,464 | 281,474 | 315,065 | 11.93% | 84.59% | 13.04% |
| Ø payments per debit card per year | 3.8 | 3.9 | 3.2 | 3.6 | 5.0 | 4.9 | 5.2 | -2.58% | 29.09% | 5.24% |
| Ø payments value (IDR) per debit card per year | Rp1,923,367.8 | Rp1,908,364.5 | Rp1,395,294.4 | Rp1,518,798.7 | Rp2,181,650.3 | Rp2,017,225.8 | Rp2,056,718.1 | -7.54% | 4.88% | 0.96% |
| Payments (m) | 577.33 | 676.04 | 647.29 | 788.94 | 1,261.62 | 1,375.73 | 1,636.64 | 9.04% | 138.29% | 18.97% |
| Value of payments (IDRbn) | 293,279.15 | 332,905.55 | 284,783.51 | 336,109.91 | 548,606.48 | 567,795.92 | 647,999.22 | 3.50% | 93.60% | 14.13% |
| ATV per debit card payment (IDR) | 507,992.22 | 492,438.34 | 439,962.10 | 426,029.38 | 434,842.19 | 412,724.87 | 395,932.68 | -5.09% | -18.75% | -4.07% |
| Total debit card payments per capita | 2.2 | 2.5 | 2.4 | 2.9 | 4.6 | 4.9 | 5.9 | 7.90% | 126.59% | 132.87% |
| Total debit card value per capita (IDR) | 1,106,649.9 | 1,241,839.2 | 1,053,957.8 | 1,232,605.4 | 1,989,335.0 | 2,037,329.2 | 2,325,109.6 | 2.41% | 84.10% | 87.23% |
| Source: BIS, Bank Indonesia. | ||||||||||
Credit Card Use
In 2023, there were 0.39 billion credit card payments (+15.05%) with the total value IDR 397.01 trillion (+25.76% from 2022). The ATV per credit card payment was IDR 1.022 million ($67.08), and there were 21.9 payments per credit card per year.
| 14 - Payments with Indonesian Credit Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Credit Cards | 17,275 | 17,487 | 16,940 | 16,514 | 17,199 | 17,727 | 17,773 | 3.07% | 2.62% | 0.52% |
| Ø payments per credit card per year | 19.1 | 19.5 | 15.8 | 16.8 | 19.6 | 21.9 | 22.6 | 11.61% | 14.60% | 2.76% |
| Ø payments value (IDR) per credit card per year | 17,667,094.6 | 19,022,340.4 | 13,668,982.5 | 14,397,113.8 | 18,355,590.9 | 22,395,259.8 | 16,583,781.3 | 22.01% | 26.76% | 4.86% |
| Payments (m) | 330.15 | 340.25 | 268.21 | 277.05 | 337.49 | 388.26 | 401.06 | 15.05% | 17.60% | 3.30% |
| Value of payments (IDRbn) | 305,201.32 | 332,644.75 | 231,553.11 | 237,748.51 | 315,695.64 | 397,011.54 | 294,750.55 | 25.76% | 30.08% | 5.40% |
| ATV per credit card payment (IDR) | 924,443.5 | 977,650.9 | 863,327.7 | 858,139.9 | 935,433.3 | 1,022,537.8 | 734,932.2 | 9.31% | 10.61% | 2.04% |
| Total credit card payments per capita | 1.2 | 1.3 | 1.0 | 1.0 | 1.2 | 1.4 | 1.4 | 20.45% | 11.83% | 2.26% |
| Total credit card payments value per capita (IDR) | 1,151,636.6 | 1,240,866.3 | 856,957.0 | 871,887.7 | 1,144,763.0 | 1,424,531.6 | 1,057,605.2 | 31.30% | 23.70% | 4.34% |
| Source: BIS, Bank Indonesia. | ||||||||||
E-Money
Indonesia’s e-money landscape is a dynamic and rapidly expanding sector, crucial for driving financial inclusion and supporting the country’s digital economy. E-money services in Indonesia are primarily regulated by Bank Indonesia (BI). BI Regulation No. 20/6/PBI/2018 on Electronic Money (PBI 20/6) serves as the key legal framework. This regulation governs the issuance and operation of e-money, aiming to ensure safety, efficiency, and consumer protection within the digital payment ecosystem. BI licenses and supervises electronic money companies and payment service providers.
E-money products offered in Indonesia include:
- Mobile wallets (e-wallets) such as GoPay, OVO, ShopeePay, DANA, and LinkAja
- Prepaid cards issued by banks and fintechs and often linked to digital wallets or used as standalone stored-value cards for retail and transit payments such as Flazz by BCA, TapCash by BNI
- Bank-Issued E-Wallets & Prepaid Apps – Livin’ by Mandiri, BRImo by BRI, blu by BCA Digital
- QR code and NFC-enabled payments – QRIS
In 2023, BIS reported that there are 809.78 million e-money cards in Indonesia and these cards were used in 7.79 billion transactions worth IDR 458.68 trillion.
| 15 - E-Money in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| - Cards with e-money function | 167,206 | 292,299 | 432,281 | 575,323 | 730,701 | 809,783 | 897,424 | 10.82% | 384.30% | 37.10% |
| Ø payments per e-money card per year | 17479.7 | 17881.3 | 10700.7 | 9473.6 | 9478.3 | 9623.4 | 9,771 | 1.53% | -44.95% | -11.25% |
| Number of E-Money Payments (m) | 2,922.7 | 5,226.7 | 4,625.7 | 5,450.4 | 6,925.8 | 7,792.9 | 8,768.5 | 12.52% | 166.63% | 21.67% |
| Value of E-Money Payments (IDR bn) | 47,198.6 | 145,165.5 | 204,909.2 | 305,435.8 | 407,534.4 | 458,683.4 | 516,252.0 | 12.55% | 871.82% | 57.59% |
| Value per Transaction (IDR) | 16,148.98 | 27,773.83 | 44,297.94 | 56,039.16 | 58,843.13 | 58,859.28 | 58,875.45 | 0.03% | 264.48% | 29.52% |
| Source: BIS, Bank Indonesia. | ||||||||||
Leading Card Issuers
In 2024, Nilson report stated that issuers from Indonesia generated $21.17 billion from 67.3 million cards
Bank Mandiri, reported that active users of Mandiri credit cards reached 2.2 million cards in 2024, reflecting an 8% growth from 2023. Similarly, the outstanding Mandiri Credit Card balance stood at Rp19.3 trillion, up 15.4% compared to Rp16.7 trillion in 2023. The bank claimed that this achievement was bolstered by Bank Mandiri’s strong Retail and Wholesale segments and its extensive distribution network. In 2024, Nilson report stated that Bank Mandiri had 21.16 million debit cards in issuance.
BCA reported 36.4 million ATM cards and 4.96 million credit cards in 2024.
Bank Negara was recorded by Nilson report as one of the top debit card issuers in Asia-Pacific with 12.3 million debit cards as of 2024.
Data Tables
| Indonesia 2025 Market Overview | |
|---|---|
| Payment Organisation | GPN (Gerbang Pembayaran Nasional) – national electronic payment network in Indonesia. GPN was established and is regulated by the Central Bank – Bank Indonesia. BI-FAST – national real-time retail payment infrastructure |
| Domestic Payment Brands | GPN cards – mostly for domestic use BI-FAST is the mobile A2A payment service in Indonesia. |
| Market Structure | Card usage in Indonesia is lower than that of countries in the Southeast Asia region at 6.33 card payments per capita in 2023. |
| Notable Market Trends | BI-FAST becoming mainstream in retail and P2P transactions, Growth in E-Wallet Usage and Financial Super Apps, Continued Exploration of Digital Currency, Growing Focus on Embedded Finance and API-Based Innovation |
| Major Card Issuers | BCA, Bank Mandiri, Bank Negara. |
| Major Card Acquirers | Bank Mandiri, BCA, Bank Negara. |
| Major Card Processors | GPN (domestic), Xendit, DOKU, Midtrans |
| Indonesia Key Statistics 2023 | |
|---|---|
| Population | 278.7 million, with 3.98 bank cards per capita. |
| Cards | Debit: 281.4 million Credit: 17.7 million Total: 299.2 million |
| Card Payments | Debit: 1.37 billion; value IDR 567.79 trillion ($37.2 billion) Credit: 0.38 billion; value IDR 397.01 trillion ($26.0 billion) Total: 1.76 billion; value IDR 964.80 trillion ($63.3 billion) |
| POS Terminals | 2,015,374 |
| POS Payments | All cards: 1.80 billion; value: IDR 897.00 trillion ($58.8 billion) |
| ATMs | 2,485 |
| ATM Withdrawals | All cards: 4.18 billion; value: IDR 3,196.8 trillion ($209.7 billion) |
| Digital A2A Payments | Credit Transfers: 17.4 billion, value: IDR 65,399.15 trillion |
| 1 - Leading Indonesian Banks in 2024 | |||
|---|---|---|---|
| Bank | Ownership | Total Assets ($m) | Market share |
| Bank Mandiri | Government of the Republic of Indonesia: 52%, Others: 48% | 159,228.1 | 19.2% |
| Bank Rakyat Indonesia (BRI) | Government of the Republic of Indonesia: 53.19%, Others: 46.81% | 130,741.5 | 15.7% |
| Bank Central Asia (BCA) | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% | 95,075.5 | 11.4% |
| Bank Negara Indonesia (BNI) | Government of the Republic of Indonesia: 60%, Others: 40% | 74,116.3 | 8.9% |
| Bank Tabungan Negara (BTN) | Government of the Republic of Indonesia: 60%, Others: 40% | 30,807.1 | 3.7% |
| Bank CIMB Niaga | CIMB GROUP SDN BHD: 91.45%, Others: 8.55% | 23,630.8 | 2.8% |
| Bank Syariah Indonesia (BSI) | Bank Mandiri: 51.46%, BNI: 23.24%, BRI: 15.37%, Others: 9.93% | 26,805.4 | 3.2% |
| Bank OCBC NISP | OCBC Overseas Investment: 85.08%, Others: 14.92% | 18,434.4 | 2.2% |
| Permata Bank | Bangkok Bank Public Company Limited: 98.71%, Others: 1.29% | 16,995.1 | 2.0% |
| Bank Danamon | MUFG Bank, Ltd: 92.47%, Others: 7.53% | 15,897.4 | 1.9% |
| Leading banks total | 591,731.6 | 71.2% | |
| other banks | 239,142.6 | 28.8% | |
| Total assets | 830,874.2 | 100.0% | |
| Source: Bank Indonesia, Bank's Annual Reports, Yearbook research. | |||
| 2 - Cashless Payment Transactions in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (millions) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y |
| Payment cards | 3,830.2 | 6,243.0 | 5,541.2 | 6,516.4 | 8,524.9 | 9,556.9 | 11,474.5 | 12.11% | 149.52% | 20.07% |
| Cheques issued | 2.6 | 2.4 | 1.8 | 1.5 | 1.3 | 1.1 | 1.0 | -11.30% | -55.22% | -14.84% |
| Credit transfers | 7,192.9 | 5,694.3 | 7,126.0 | 10,234.4 | 13,457.2 | 17,452.2 | 20,837.3 | 29.69% | 142.63% | 19.40% |
| Direct debits | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.00% | 0.00% | 0.00% |
| Total | 11,043.5 | 11,955.5 | 12,680.9 | 16,761.3 | 21,991.2 | 27,017.1 | 32,312.8 | 22.85% | 144.64% | 19.59% |
| Total card payments per capita | 14.5 | 23.3 | 20.5 | 23.9 | 30.9 | 34.3 | 41.2 | 10.93% | 137.27% | 18.86% |
| Total cheques issued per capita | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -12.23% | -57.42% | -15.70% |
| Total credit transfers per capita | 27.1 | 21.2 | 26.4 | 37.5 | 48.8 | 62.6 | 74.8 | 28.33% | 130.72% | 18.20% |
| Total direct debits per capita | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -1.05% | -4.91% | -1.00% |
| Total cashless payments per capita | 41.7 | 44.6 | 46.9 | 61.5 | 79.7 | 96.9 | 115.9 | 21.57% | 132.63% | 18.40% |
| Source: BIS. | ||||||||||
| 3 - Average Exchange Rates | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
| 1 EUR in IDR | 16,803.2 | 15,835.3 | 16,627.4 | 16,920.7 | 15,625.3 | 16,479.6 |
| 1 USD in IDR | 14,242.2 | 14,145.2 | 14,562.6 | 14,307.0 | 14,853.9 | 15,243.7 |
| Source: ECB, BIS. | ||||||
| 4 - Leading Card Issuers in Indonesia | ||
|---|---|---|
| Domestic Issuers | Issued Card Brands | Owned by |
| Bank Central Asia | Mastercard, VISA, AMEX, JCB, UnionPay, BCA Card | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% |
| Bank Mandiri | Mastercard, VISA, JCB | Government of the Republic of Indonesia: 52%, Others: 48% |
| Bank Negara | Mastercard, VISA, AMEX, JCB | Government of the Republic of Indonesia: 60%, Others: 40% |
| Source: Nilson report, PCM research | ||
| 5 - Leading Acquirers in Indonesia | ||
|---|---|---|
| Domestic Acquirers | Acceptance Brands offered | Owned by |
| Bank Mandiri | Mastercard, VISA, JCB, UnionPay | Government of the Republic of Indonesia: 52%, Others: 48% |
| Bank Central Asia | Mastercard, VISA, AMEX, JCB, UnionPay, BCA Card | PT Dwimuria Investama Andalan: 54.94%, Others: 45.06% |
| Bank Rakyat Indonesia (BRI) | Mastercard, VISA, AMEX, JCB, UnionPay | Government of the Republic of Indonesia: 53.19%, Others: 46.81% |
| Bank Negara | Mastercard, VISA, AMEX, JCB, UnionPay | Government of the Republic of Indonesia: 60%, Others: 40% |
| Source: Nilson report, PCM research | ||
| 6 - ATMs and Cash Withdrawals in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| ATM Terminals with cash function | 106,901 | 106,649 | 104,654 | 98,853 | 98,585 | 98,829 | 99,074 | 0.25% | -7.55% | -1.56% |
| Ø Number of TXs per ATM per month | 3,009.9 | 3,373.0 | 3,189.4 | 3,504.0 | 3,453.0 | 3,527.8 | 3,604.2 | 2.17% | 17.21% | 3.23% |
| Number of ATM cash withdrawals (m) | 3,861.1 | 4,316.7 | 4,005.4 | 4,156.6 | 4,085.0 | 4,183.8 | 4,285.0 | 2.42% | 8.36% | 1.62% |
| - withdrawals on Indonesian cards (m) | 3,861.1 | 4,316.7 | 4,005.4 | 4,156.6 | 4,085.0 | 4,183.8 | 4,285.0 | 2.42% | 8.36% | 1.62% |
| Value of ATM cash withdrawals (IDR bn) | 2,846,636.4 | 3,214,497.1 | 2,998,322.7 | 3,150,375.7 | 3,117,722.8 | 3,196,804.0 | 3,156,260.5 | 2.54% | 12.30% | 2.35% |
| - withdrawals on Indian cards (IDR bn) | 2,846,636.4 | 3,214,497.1 | 2,998,322.7 | 3,150,375.7 | 3,117,722.8 | 3,196,804.0 | 3,156,260.5 | 2.54% | 12.30% | 2.35% |
| ATV per ATM withdrawal (IDR) | 737,258.38 | 744,657.11 | 748,567.48 | 757,916.93 | 763,221.22 | 764,095.22 | 769,578.69 | 0.11% | 3.64% | 0.72% |
| # ATM Terminals per 1m capita - Indonesia | 403.4 | 397.8 | 387.3 | 362.5 | 357.5 | 354.6 | 355.5 | -0.80% | -12.09% | -2.54% |
| Source: BIS. | ||||||||||
| 7 - POS Terminals in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| POS terminals (EDC Machines) | 1,045,903 | 1,070,960 | 1,362,234 | 1,761,930 | 1,711,413 | 2,015,374 | 2,373,321 | 17.76% | 92.69% | 14.02% |
| Ø Number of TXs per POS per month | 160.8 | 136.7 | 108.5 | 83.7 | 77.1 | 74.6 | 72.2 | -3.23% | -53.62% | -14.24% |
| Number of POS payments (m) | 2,018.60 | 1,756.46 | 1,773.06 | 1,768.95 | 1,583.12 | 1,804.06 | 2,055.83 | 13.96% | -10.63% | -2.22% |
| - 'On Us' transactions (m) | 1,652.50 | 1,387.11 | 1,530.71 | 1,479.79 | 1,153.13 | 1,247.20 | 1,221.40 | 8.16% | -24.53% | -5.47% |
| - 'Off Us' transactions (m) | 366.10 | 369.35 | 242.34 | 289.16 | 429.99 | 556.85 | 524.29 | 29.50% | 52.10% | 8.75% |
| Value of POS payments (IDR bn) | 1,122,055.82 | 918,636.20 | 522,531.82 | 604,415.79 | 756,727.14 | 897,003.69 | 1,063,283.68 | 18.54% | -20.06% | -4.38% |
| - 'On Us' transactions (IDR bn) | 773,615.65 | 590,819.22 | 349,364.53 | 409,805.14 | 454,213.06 | 509,807.85 | 551,830.70 | 12.24% | -34.10% | -8.00% |
| - 'Off Us' transactions (IDR bn) | 348,440.17 | 327,816.98 | 173,167.29 | 194,610.65 | 302,514.08 | 387,195.84 | 319,545.23 | 27.99% | 11.12% | 2.13% |
| ATV per POS payment (IDR) | 555,859.47 | 523,004.98 | 294,706.64 | 341,681.27 | 477,998.55 | 497,214.74 | 517,203.44 | 4.02% | -10.55% | -2.21% |
| # POS Terminals per 1m capita - Indonesia | 3,946.6 | 3,995.0 | 5,041.5 | 6,461.5 | 6,205.9 | 7,231.4 | 8,515.8 | 16.53% | 83.23% | 12.88% |
| Source: BIS, Bank Indonesia. | ||||||||||
| 8 - Digital Payments in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Number of Phone Banking Transactions ('000) | 2,281.0 | 2,192.6 | 1,919.2 | 498.4 | 1,158.2 | 94.6 | 47.1 | -91.83% | -95.85% | -47.08% |
| Value of Phone Banking Transactions (IDR bn) | 23,032.3 | 92,368.5 | 191,599.9 | 32,861.2 | 3,131.8 | 1,475.8 | 1,073.9 | -52.88% | -93.59% | -42.28% |
| Value per Transaction (IDR) | 10,097,529.9 | 42,127,920.8 | 99,833,029.6 | 65,931,400.5 | 2,703,999.2 | 15,593,123.6 | 16,336,399.40 | 476.67% | 54.43% | 9.08% |
| Number of SMS/Mobile Banking Transactions (m) | 2,855.6 | 2,360.1 | 3,427.1 | 5,534.2 | 8,354.9 | 12,334.0 | 19,550.66 | 47.63% | 331.93% | 33.99% |
| Value of SMS/Mobile Banking Transactions (IDR bn) | 2,328,703.4 | 3,522,491.4 | 4,770,122.3 | 7,730,865.0 | 9,995,238.5 | 14,378,353.0 | 23,077,473.36 | 43.85% | 517.44% | 43.92% |
| Value per Transaction (IDR) | 815,498.92 | 1,492,521.57 | 1,391,882.61 | 1,396,914.12 | 1,196,327.22 | 1,165,745.99 | 1,135,946.50 | -2.56% | 42.95% | 7.41% |
| Number of Internet Banking Transactions (m) | 2,238.7 | 1,151.8 | 1,531.8 | 2,237.8 | 3,409.5 | 3,710.2 | 2,453.66 | 8.82% | 65.73% | 10.63% |
| Value of Internet Banking Transactions (IDR bn) | 20,241,522.6 | 23,764,896.5 | 22,585,573.3 | 33,089,391.6 | 42,550,582.3 | 43,945,073.9 | 64,788,640.21 | 3.28% | 117.10% | 16.77% |
| Value per Transaction (IDR) | 9,041,841.42 | 20,633,044.28 | 14,744,090.77 | 14,786,810.23 | 12,479,995.57 | 11,844,407.66 | 11,241,189.30 | -5.09% | 31.00% | 5.55% |
| Source: Bank Indonesia. | ||||||||||
| 9 - Internet Use in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Households with internet access | 66.2% | 73.8% | 78.2% | 82.1% | 86.5% | 87.1% | 87.6% | 0.64% | 31.52% | 5.63% |
| Households owning cellular phones | 90.8% | 90.5% | 92.4% | 89.0% | 85.8% | -3.61% | NA | NA | ||
| Individuals who own a mobile cellular telephone (%) | 62.4% | 63.5% | 62.8% | 65.9% | 67.9% | 67.3% | 66.7% | -0.87% | 7.82% | 1.52% |
| Individuals who used the internet (%) | 39.9% | 47.7% | 53.7% | 62.1% | 66.5% | 69.2% | 72.1% | 4.11% | 73.46% | 11.64% |
| Mobile subscribers per 100 inhabitants | 119.6% | 126.6% | 130.8% | 133.7% | 114.9% | 125.0% | 126.1% | 8.79% | 4.51% | 0.89% |
| Source: ITU, BPS Statistics indonesia. | ||||||||||
| 10 - Cards Issued in Indonesia | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (000s) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Cards with ATM (cash) function | 178,604.23 | 200,912.41 | 230,547.31 | 242,815.61 | 273,247.19 | 303,500.46 | 330,382.7 | 11.07% | 69.93% | 11.19% | |
| Cards with a payment function | 169,757.22 | 191,932.53 | 221,042.86 | 237,813.47 | 268,662.87 | 299,201.14 | 332,838.1 | 11.37% | 76.25% | 12.00% | |
| - Cards with a debit function | 152,482.09 | 174,445.47 | 204,102.82 | 221,299.85 | 251,463.99 | 281,473.66 | 315,064.7 | 11.93% | 84.59% | 13.04% | |
| - Cards with a credit function | 17,275.13 | 17,487.06 | 16,940.04 | 16,513.62 | 17,198.88 | 17,727.48 | 17,773.4 | 3.07% | 2.62% | 0.52% | |
| Cards total | 169,757.22 | 191,932.53 | 221,042.86 | 237,813.47 | 268,662.87 | 299,201.14 | 332,838.1 | 11.37% | 76.25% | 12.00% | |
| - Cards with e-money function | 167,205.58 | 292,299.32 | 432,281.38 | 575,323.42 | 730,701.04 | 809,783.31 | 315,064.7 | 10.82% | 384.30% | 37.10% | |
| - thereof contactless cards | 167,205.58 | 292,299.32 | 432,281.38 | 575,323.42 | 730,701.04 | 809,783.31 | 853,603.9 | 10.82% | 384.30% | 37.10% | |
| Payment cards per capita | 1.27 | 1.81 | 2.42 | 2.98 | 3.62 | 3.98 | 1.19 | 9.81% | 212.96% | 25.63% | |
| Source: BIS, Bank Indonesia | |||||||||||
| 11 - Payments with Indonesian Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Cards with a payment function | 169,757 | 191,933 | 221,043 | 237,813 | 268,663 | 299,201 | 332,838 | 11.37% | 76.25% | 12.00% |
| Ø payments per card per year | 5.3 | 5.3 | 4.1 | 4.5 | 6.0 | 5.9 | 6122.2 | -0.95% | 10.29% | 1.98% |
| Ø payment value per card per year | Rp3,525,508.14 | Rp3,467,626.39 | Rp2,335,911.82 | Rp2,413,061.04 | Rp3,217,050.84 | Rp3,224,611.57 | Rp2,832,457.47 | 0.24% | -8.53% | -1.77% |
| Payments (m) | 907.5 | 1,016.3 | 915.5 | 1,066.0 | 1,599.1 | 1,764.0 | 2,037.7 | 10.31% | 94.38% | 14.22% |
| - with debit cards (m) | 577.3 | 676.0 | 647.3 | 788.9 | 1,261.6 | 1,375.7 | 1,636.6 | 9.04% | 138.29% | 18.97% |
| - with credit cards (m) | 330.1 | 340.2 | 268.2 | 277.1 | 337.5 | 388.3 | 401.1 | 15.05% | 17.60% | 3.30% |
| Value of payments (IDR bn) | 598,480.47 | 665,550.30 | 516,336.62 | 573,858.42 | 864,302.12 | 964,807.46 | 942,749.76 | 11.63% | 61.21% | 10.02% |
| - with debit cards (IDR bn) | 293,279.15 | 332,905.55 | 284,783.51 | 336,109.91 | 548,606.48 | 567,795.92 | 647,999.22 | 3.50% | 93.60% | 14.13% |
| - with credit cards (IDR bn) | 305,201.32 | 332,644.75 | 231,553.11 | 237,748.51 | 315,695.64 | 397,011.54 | 294,750.55 | 25.76% | 30.08% | 5.40% |
| ATV per card payment | Rp659,500.05 | Rp654,886.14 | Rp563,993.51 | Rp538,335.29 | Rp540,490.15 | Rp546,947.35 | Rp462,654.31 | 1.19% | -17.07% | -3.67% |
| Source: BIS, Bank Indonesia | ||||||||||
| 12 - Card Payments Per Capita in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Debit card payments | 2.18 | 2.52 | 2.40 | 2.89 | 4.57 | 4.94 | 5.3 | 7.90% | 126.59% | 17.77% |
| Debit card value | Rp77.70 | Rp87.79 | Rp72.37 | Rp86.15 | Rp133.93 | Rp133.65 | Rp148.96 | -0.21% | 72.00% | 11.46% |
| Credit card payments | 1.2 | 1.3 | 1.0 | 1.0 | 1.2 | 1.39 | 1.2 | 13.84% | 11.83% | 2.26% |
| Credit card value | Rp80.86 | Rp87.72 | Rp58.85 | Rp60.94 | Rp77.07 | Rp93.45 | Rp96.19 | 21.26% | 15.57% | 2.94% |
| Total card payments | 3.4 | 3.8 | 3.4 | 3.9 | 5.8 | 6.33 | 6.5 | 9.15% | 84.84% | 13.07% |
| Total card value | Rp158.56 | Rp175.52 | Rp131.22 | Rp147.10 | Rp210.99 | Rp227.10 | Rp245.16 | 7.63% | 43.22% | 7.45% |
| Source: calculated using BIS data, population figures and exchange rates. | ||||||||||
| 13 - Payments with Indonesian Debit Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Debit Cards | 152,482 | 174,445 | 204,103 | 221,300 | 251,464 | 281,474 | 315,065 | 11.93% | 84.59% | 13.04% |
| Ø payments per debit card per year | 3.8 | 3.9 | 3.2 | 3.6 | 5.0 | 4.9 | 5.2 | -2.58% | 29.09% | 5.24% |
| Ø payments value (IDR) per debit card per year | Rp1,923,367.8 | Rp1,908,364.5 | Rp1,395,294.4 | Rp1,518,798.7 | Rp2,181,650.3 | Rp2,017,225.8 | Rp2,056,718.1 | -7.54% | 4.88% | 0.96% |
| Payments (m) | 577.33 | 676.04 | 647.29 | 788.94 | 1,261.62 | 1,375.73 | 1,636.64 | 9.04% | 138.29% | 18.97% |
| Value of payments (IDRbn) | 293,279.15 | 332,905.55 | 284,783.51 | 336,109.91 | 548,606.48 | 567,795.92 | 647,999.22 | 3.50% | 93.60% | 14.13% |
| ATV per debit card payment (IDR) | 507,992.22 | 492,438.34 | 439,962.10 | 426,029.38 | 434,842.19 | 412,724.87 | 395,932.68 | -5.09% | -18.75% | -4.07% |
| Total debit card payments per capita | 2.2 | 2.5 | 2.4 | 2.9 | 4.6 | 4.9 | 5.9 | 7.90% | 126.59% | 132.87% |
| Total debit card value per capita (IDR) | 1,106,649.9 | 1,241,839.2 | 1,053,957.8 | 1,232,605.4 | 1,989,335.0 | 2,037,329.2 | 2,325,109.6 | 2.41% | 84.10% | 87.23% |
| Source: BIS, Bank Indonesia. | ||||||||||
| 14 - Payments with Indonesian Credit Cards | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| Credit Cards | 17,275 | 17,487 | 16,940 | 16,514 | 17,199 | 17,727 | 17,773 | 3.07% | 2.62% | 0.52% |
| Ø payments per credit card per year | 19.1 | 19.5 | 15.8 | 16.8 | 19.6 | 21.9 | 22.6 | 11.61% | 14.60% | 2.76% |
| Ø payments value (IDR) per credit card per year | 17,667,094.6 | 19,022,340.4 | 13,668,982.5 | 14,397,113.8 | 18,355,590.9 | 22,395,259.8 | 16,583,781.3 | 22.01% | 26.76% | 4.86% |
| Payments (m) | 330.15 | 340.25 | 268.21 | 277.05 | 337.49 | 388.26 | 401.06 | 15.05% | 17.60% | 3.30% |
| Value of payments (IDRbn) | 305,201.32 | 332,644.75 | 231,553.11 | 237,748.51 | 315,695.64 | 397,011.54 | 294,750.55 | 25.76% | 30.08% | 5.40% |
| ATV per credit card payment (IDR) | 924,443.5 | 977,650.9 | 863,327.7 | 858,139.9 | 935,433.3 | 1,022,537.8 | 734,932.2 | 9.31% | 10.61% | 2.04% |
| Total credit card payments per capita | 1.2 | 1.3 | 1.0 | 1.0 | 1.2 | 1.4 | 1.4 | 20.45% | 11.83% | 2.26% |
| Total credit card payments value per capita (IDR) | 1,151,636.6 | 1,240,866.3 | 856,957.0 | 871,887.7 | 1,144,763.0 | 1,424,531.6 | 1,057,605.2 | 31.30% | 23.70% | 4.34% |
| Source: BIS, Bank Indonesia. | ||||||||||
| 15 - E-Money in Indonesia | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024F | GR 22/23 | GR 5Y | CAGR 5Y | |
| - Cards with e-money function | 167,206 | 292,299 | 432,281 | 575,323 | 730,701 | 809,783 | 897,424 | 10.82% | 384.30% | 37.10% |
| Ø payments per e-money card per year | 17479.7 | 17881.3 | 10700.7 | 9473.6 | 9478.3 | 9623.4 | 9,771 | 1.53% | -44.95% | -11.25% |
| Number of E-Money Payments (m) | 2,922.7 | 5,226.7 | 4,625.7 | 5,450.4 | 6,925.8 | 7,792.9 | 8,768.5 | 12.52% | 166.63% | 21.67% |
| Value of E-Money Payments (IDR bn) | 47,198.6 | 145,165.5 | 204,909.2 | 305,435.8 | 407,534.4 | 458,683.4 | 516,252.0 | 12.55% | 871.82% | 57.59% |
| Value per Transaction (IDR) | 16,148.98 | 27,773.83 | 44,297.94 | 56,039.16 | 58,843.13 | 58,859.28 | 58,875.45 | 0.03% | 264.48% | 29.52% |
| Source: BIS, Bank Indonesia. | ||||||||||