Bank DBS Indonesia collaborates with e-commerce and fintech to strengthen commitment in improving a sustainable digital economy in Indonesia | Bahasa
Indonesia.15 Sep 2022.3 min read
Indonesia, 15 Sep 2022 - In an effort to support the growth of the digital economy, Bank DBS Indonesia, Bukalapak, CARInih, Home Credit Indonesia, DOKU, Modalku, Flip, and Warung Pintar initiated a digitalization and financial education campaign titled 'More innovation, less limitation'. This collaboration focuses on education and the development of a sustainable digital financial ecosystem and targets the unbanked and underbanked in Indonesia.
The Asian Banker in 2022 stated that the digital economy has the potential to boost economic growth prospects as well as transform people's lives. However, of the 181 million adult population in Indonesia, 51% are still in the unbanked category and 26% are underbanked. This figure places Indonesia in 5th place as the country with the largest underbanked population in Southeast Asia.
In addition, a Deloitte study shows that the digital economy in Indonesia has the potential to grow by USD133 million in the next five years, encouraging institutions to increasingly innovate to accelerate digitalization growth in all sectors. With the increasing availability of smartphones and the internet in parallel in Indonesia, 60 million new consumers have recorded joining the digital economy during the pandemic period alone.
Head of Group Strategic Marketing & Communications PT Bank DBS Indonesia Mona Monika stated, “The world is currently experiencing a very fast growth of digital technology and changing many aspects of our lives. Responding to this opportunity, Bank DBS Indonesia has transformed into more like a technology company, and no longer sees itself as a conventional bank. Inspired by DBS Bank's brand position for Live more, Bank less, the spirit of More innovation, less limitation was born where we built a strategic financial ecosystem with Bukalapak, CARInih, Home Credit Indonesia, DOKU, Modalku, Flip, and Warung Pintar. We are committed to continue working and creating opportunities and empowering the community to build the national economy.”
Despite the high adoption of digitalization among the public, there are still obstacles to achieve a digital-based economy including funding, taxation, consumer protection, communication infrastructure, logistics, as well as education and human resources. The unbanked, underbanked, and micro, small and medium enterprises (MSMEs) are still faced with issues of moving their operations online, connections and infrastructure, data protection and cybersecurity. Another challenge is digitizing services and also increasing the capability of qualified resources. These issues are an agenda with digital business players to produce comprehensive and synchronized service programs and policies.
Victor Lesmana as the President, Commerce and Fintech Bukalapak, an all-commerce company that focuses on empowering MSMEs, said that they are collaborating in the More innovation, less limitation campaign as a form of commitment to increase financial inclusion through the provision of payment features on the Bukalapak Partner platform that are innovative and inclusive for whole society. This has opened up opportunities for Bukalapak Partners to facilitate easy and secure digital transactions for more than 14 million Bukalapak Partners throughout Indonesia and contributed to the formation of a “Fair Economy for All”.
Bank DBS Indonesia believes that optimizing the growth of the digital economy requires strong collaboration from various drivers of digitalization and Indonesian finance, including e-commerce and fintech, which are the future of the Indonesian economy. The benefits of e-commerce are proven not only to sustain, but also managed to restore the businesses of MSME actors more quickly during the pandemic[1].
In a collaborative research between Google and Temasek Bain & Co in 2021[2], it was recorded that 95% of digital merchants had used digital payments and 51% had used digital loan solutions. The presence of fintech provides more solutions and options so that they can present financial markets that are more accessible to ordinary consumers and allow more hard to reach people to engage in economic activities[3].
Seeing these developments, since its inception, Flip is committed to go beyond boundaries and eliminate the limitations experienced by the community in digital transactions. Co-founder and CEO of Flip Rafi Putra Arriyan conveyed Flip’s commitment to contribute into creating a fair financial environment in Indonesia through technology-based financial solutions to meet the needs of individual and business transactions (fair financial solutions).
In addition, DOKU Co-Founder and COO, Nabilah Alsagoff also welcomed this collaboration, “As a pioneer of payment gateway companies since 2007, DOKU has always strived to come up with innovations that can help business people and MSMEs in going digital. In line with this mission, DOKU is now focusing on developing a system that can boost the digital economy growth of the Indonesia people through various features specifically designed to facilitate digital payments.”
As one of the leading technology based retail companies, Warung Pintar is also collaborating in this campaign. Warung Pintar provides digital services that increase transparency and efficiency of distribution channels, access to national distributors, product availability, and capital loans. As conveyed by the CEO of Warung Pintar, Agung Bezharie Hadinegoro, until now Warung Pintar has collaborated with more than 500,000 Warung partners in 200 cities and regencies. Henceforward, Warung Pintar will continue to increase the potential and opportunities for micro-enterprises and their surroundings.
Along with this vision, Modalku Co-Founder and CEO, Reynold Irsian Wijaya established a digital funding platform for potential MSMEs to open up more opportunities so they can collaborate to build a digital economy that empowers people. Through periodic products, services, and education, Modalku is committed to continuously maximizing the economic potential of MSMEs.
Sylvia Lazuarni, as CFO of Home Credit Indonesia also conveyed a similar thing. As a technology-based finance company, Home Credit Indonesia continues to innovate and digitize within the company to educate and improve the financial inclusion of the unbanked and underbanked people in a sustainable manner.
Bank DBS Indonesia as a purpose-driven bank pays special attention to digital innovation for each product and service according to customer needs. In this collaboration, Bank DBS Indonesia, which brought in digibank by DBS as one of the pioneers of digital banking in Indonesia, presents an easy, concise, and convenient payment solution for users.
Bank DBS Indonesia also realizes its commitment to support the acceleration of digital payment penetration through a non-cash-based payment system, namely through the MAX QRIS product and Real-Time API (RAPID). This feature makes it easy for customers to make transactions with less worry since every transaction report has been recorded automatically.
As a customer’s financial partner, Bank DBS INdonesia is committed to providing education about financial literacy and assistance in accordance with customer profiles and needs. In the first half of 2022, Bank DBS Indonesia held 25 online and offline financial literacy education activities attended by 2,209 participants.
For further information about the More innovation, less limitation campaign, visit https://www.dbs.id/ or follow Instagram @dbsbankid.
The Asian Banker in 2022 stated that the digital economy has the potential to boost economic growth prospects as well as transform people's lives. However, of the 181 million adult population in Indonesia, 51% are still in the unbanked category and 26% are underbanked. This figure places Indonesia in 5th place as the country with the largest underbanked population in Southeast Asia.
In addition, a Deloitte study shows that the digital economy in Indonesia has the potential to grow by USD133 million in the next five years, encouraging institutions to increasingly innovate to accelerate digitalization growth in all sectors. With the increasing availability of smartphones and the internet in parallel in Indonesia, 60 million new consumers have recorded joining the digital economy during the pandemic period alone.
Head of Group Strategic Marketing & Communications PT Bank DBS Indonesia Mona Monika stated, “The world is currently experiencing a very fast growth of digital technology and changing many aspects of our lives. Responding to this opportunity, Bank DBS Indonesia has transformed into more like a technology company, and no longer sees itself as a conventional bank. Inspired by DBS Bank's brand position for Live more, Bank less, the spirit of More innovation, less limitation was born where we built a strategic financial ecosystem with Bukalapak, CARInih, Home Credit Indonesia, DOKU, Modalku, Flip, and Warung Pintar. We are committed to continue working and creating opportunities and empowering the community to build the national economy.”
Despite the high adoption of digitalization among the public, there are still obstacles to achieve a digital-based economy including funding, taxation, consumer protection, communication infrastructure, logistics, as well as education and human resources. The unbanked, underbanked, and micro, small and medium enterprises (MSMEs) are still faced with issues of moving their operations online, connections and infrastructure, data protection and cybersecurity. Another challenge is digitizing services and also increasing the capability of qualified resources. These issues are an agenda with digital business players to produce comprehensive and synchronized service programs and policies.
Victor Lesmana as the President, Commerce and Fintech Bukalapak, an all-commerce company that focuses on empowering MSMEs, said that they are collaborating in the More innovation, less limitation campaign as a form of commitment to increase financial inclusion through the provision of payment features on the Bukalapak Partner platform that are innovative and inclusive for whole society. This has opened up opportunities for Bukalapak Partners to facilitate easy and secure digital transactions for more than 14 million Bukalapak Partners throughout Indonesia and contributed to the formation of a “Fair Economy for All”.
Bank DBS Indonesia believes that optimizing the growth of the digital economy requires strong collaboration from various drivers of digitalization and Indonesian finance, including e-commerce and fintech, which are the future of the Indonesian economy. The benefits of e-commerce are proven not only to sustain, but also managed to restore the businesses of MSME actors more quickly during the pandemic[1].
In a collaborative research between Google and Temasek Bain & Co in 2021[2], it was recorded that 95% of digital merchants had used digital payments and 51% had used digital loan solutions. The presence of fintech provides more solutions and options so that they can present financial markets that are more accessible to ordinary consumers and allow more hard to reach people to engage in economic activities[3].
Seeing these developments, since its inception, Flip is committed to go beyond boundaries and eliminate the limitations experienced by the community in digital transactions. Co-founder and CEO of Flip Rafi Putra Arriyan conveyed Flip’s commitment to contribute into creating a fair financial environment in Indonesia through technology-based financial solutions to meet the needs of individual and business transactions (fair financial solutions).
In addition, DOKU Co-Founder and COO, Nabilah Alsagoff also welcomed this collaboration, “As a pioneer of payment gateway companies since 2007, DOKU has always strived to come up with innovations that can help business people and MSMEs in going digital. In line with this mission, DOKU is now focusing on developing a system that can boost the digital economy growth of the Indonesia people through various features specifically designed to facilitate digital payments.”
As one of the leading technology based retail companies, Warung Pintar is also collaborating in this campaign. Warung Pintar provides digital services that increase transparency and efficiency of distribution channels, access to national distributors, product availability, and capital loans. As conveyed by the CEO of Warung Pintar, Agung Bezharie Hadinegoro, until now Warung Pintar has collaborated with more than 500,000 Warung partners in 200 cities and regencies. Henceforward, Warung Pintar will continue to increase the potential and opportunities for micro-enterprises and their surroundings.
Along with this vision, Modalku Co-Founder and CEO, Reynold Irsian Wijaya established a digital funding platform for potential MSMEs to open up more opportunities so they can collaborate to build a digital economy that empowers people. Through periodic products, services, and education, Modalku is committed to continuously maximizing the economic potential of MSMEs.
Sylvia Lazuarni, as CFO of Home Credit Indonesia also conveyed a similar thing. As a technology-based finance company, Home Credit Indonesia continues to innovate and digitize within the company to educate and improve the financial inclusion of the unbanked and underbanked people in a sustainable manner.
Bank DBS Indonesia as a purpose-driven bank pays special attention to digital innovation for each product and service according to customer needs. In this collaboration, Bank DBS Indonesia, which brought in digibank by DBS as one of the pioneers of digital banking in Indonesia, presents an easy, concise, and convenient payment solution for users.
Bank DBS Indonesia also realizes its commitment to support the acceleration of digital payment penetration through a non-cash-based payment system, namely through the MAX QRIS product and Real-Time API (RAPID). This feature makes it easy for customers to make transactions with less worry since every transaction report has been recorded automatically.
As a customer’s financial partner, Bank DBS INdonesia is committed to providing education about financial literacy and assistance in accordance with customer profiles and needs. In the first half of 2022, Bank DBS Indonesia held 25 online and offline financial literacy education activities attended by 2,209 participants.
For further information about the More innovation, less limitation campaign, visit https://www.dbs.id/ or follow Instagram @dbsbankid.
[1] Why e-commerce is key to Indonesia’s small businesses. (2021). World Bank Blogs. Why e-commerce is key to Indonesia’s small businesses (worldbank.org)
[2] e-Conomy SEA 2021: Roaring 20s – The SEA Digital Decade. (2021). Google. e-Conomy SEA 2021: Post-pandemic marketing - Think with Google APAC
[3] FinTech and its Role in the Future of Fiancial Services. (n.d). Center Forward. FinTech and its Role in the Future of Financial Services - Center Forward (center-forward.org)
