Indonesia shows a reverse gender gap: 51.4% of the female adult population is banked compared to 46.2% of the male population. That metric of success, however, can lead to complacency. When financial service providers adopt a gender-agonistic view or do not recognize low-income women as a target market, they lose out on a significant market opportunity and millions of women go without financial services that address their particular needs.
Large youth population -35% is between 15-34 years
Steady urbanization from47% to 55% in 2016
11%still live belowpoverty line
Low and stagnant female labor force(80% in informal sector)
51%
Compared to men
80%
2nd largest migrant populationof which 47% are women1
Dynamic market forentrepreneurship—59MMenterprises employing 97%of adults and contributingto 60% of GDP
Improvement in financialinclusion from 19.6% (2011) to
48.9%(2017)
However, gender gap haswidened from 7% to
29%
Reverse gender gap
51% of women are financiallyincluded vs 46% of men
There is wideregional disparity infinancial inclusion
Some areas experience oversupply whileothers remain underserved
47MM (48%) unbanked adult women
15MM (19%) underserved adult women
High mobile phone penetration (77%)
Low penetration of digital financial services (3%)
Infrastructure and connectivity challenges and lack of awareness are significant barriers to uptake of digital financial services
Financial ServiceProviders
Financial sector dominated by banksCooperatives and microfinance institutions continue to play a roleIndonesia is becoming a hub for digital innovation (e.g., “super-apps” suchas Bukalapak, Tokopedia, Go-Pay) withmany new non-bank and FinTechplayers emerging
Government
National Financial Inclusion Strategy launched in 2016, with target of 75% inclusion by 2019Focus on regulations around e-moneyand Laku PandaiPush towards Digital Economy 2020Development of national payments gateway to support interoperability
Market Opportunity
48% (47MM) of women remain unbanked and 18MM women have accounts that have not been used in the last 12 months
THE OPPORTUNITIES
1
Increase access to capital for womenentrepreneurs to support income generation
2
Increase access to basic savings / e-moneyaccounts for wage / remittance receivers
3
Drive uptake / usage of e-money accounts forwomen entrepreneurs
Looking Ahead
Indonesia’s economic dynamism allows room for new players alongside established institutions. Women’s World Banking’s partnerships with this expanding ecosystem will drive women-specific solutions to meet the needs of a growing digital economy.
1. Overview of Internal Migration in Indonesia,UNESCO, http://bangkok.unesco.org/content/policy-briefs-internal-migration-southeast-asia
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