As part of the European Indonesian Business Network initiative "Gateways to ASEAN: ICT Opportunities in Indonesia", had a chance to travel to the Polish cities of Warsaw, Wroclaw and Poznan to share with Polish entrepreneurs the challenges and opportunities of conducting business in Indonesia.
The main topics of conversation included Digital, Mobile, FinTech Development & Logistics.
The discussions focused on providing attendees with practical perspectives on where the ICT business potential of Indonesia lies and what is to be expected when choosing to enter the country's high potential market.
The ICT Business Opportunities in Indonesia sessions have the support of the Polish Agency for Enterprise Development (PARP), and are co-organized by the Polish Chamber of Commerce (in Warsaw), the Wroclaw Center of Technology Transfer (in Wroclaw) and the Poznan Science and Technology Park (Poznan).
3. Who am I?
Piotr Jakubowski
@piotrj
Born in Indonesia
Finished primary education in
Indonesia
University & work career in
Chicago, New York & Tokyo
Native Bahasa Speaker
4. Who am I?
Returned to Indonesia in 2011
Specialization in digital advertising
industry (Strategist & General
Manager)
Silent investor & advisor in startups
doing business in Indonesia
Advisor with SHARE Foundation
since 2014
6. As the name implies –
SHARE Foundation is to
share polish information
technology as well as
knowledge and
experience of polish
developers and coders
with Southeast Asia, as
we believe that good
once shared, comes back
from recipents sooner or
later, so we warmly
welcome and support SEA
IT in Poland too.
7. In order to put into
practice the idea, we
have formed SHARE as a
non-profit Organization -
specifically to faciliate
the transfer of
information technology
and human resources
between Southeast Asia
and Poland, as a main
activity.
More about us:
www.sharefoundation.co
16. POPULATION: 255 MILLION
ACTIVE INTERNET USERS: 72 MILLION
ACTIVE SOCIAL MEDIA ACCOUNTS: 72 MILLION
MOBILE PHONE CONNECTIONS: 305 MILLION (128%
PENETRATION)
ACTIVE MOBILE SOCIAL CONNECTIONS: 62 MILLION
SOURCE: WE ARE SOCIAL
17. DIGITAL NATIVES
OVER 50% OF INDONESIA’S POPULATION IS UNDER THE AGE
OF 30
SOURCE: APJI, PROFIL INTERNET INDONESIA 2012
18. TIME SPENT WITH MEDIA - DAILY
AVERAGE INTERNET USE (PC): 5H 06M
AVERAGE INTERNET USE (MOBILE): 3H 10M
AVERAGE SOCIAL MEDIA USE: 2H 52M
TELEVISION VIEWING TIME (INTERNET USERS): 2H
29M
SOURCE: WE ARE SOCIAL
19. INTERNET USAGE
ACTIVE INTERNET USERS: 72 MILLION
INTERNET PENETRATION: 28%
ACTIVE MOBILE INTERNET USERS: 54 MILLION
MOBILE INTERNET PENETRATION: 21%
SOURCE: WE ARE SOCIAL
20. SHARE OF WEB TRAFFIC
DESKTOP/PC: 45%
MOBILE: 50%
TABLET: 4%
OTHER: 0%
SOURCE: WE ARE SOCIAL
22. MOBILE PHONES
NUMBER OF SUBSCRIPTIONS: 308 MILLION
MOBILE PENETRATION: 128%
PERCENTAGE OF PRE-PAID CONNECTIONS: 99%
PERCENTAGE OF POST-PAID CONNECTIONS: 1%
PERCENTAGE OF 3G/4G CONNECTIONS: 34%
SOURCE: WE ARE SOCIAL
23. MOBILE ACTIVITIES
SOCIAL MEDIA APP USE: 14%
MOBILE VIDEO WATCHING: 11%
MOBILE GAME PLAYING: 10%
LOCATION BASED SEARCH: 9%
MOBILE BANKING USAGE: 11%
SOURCE: WE ARE SOCIAL
42. Per capita GDP and Internet penetration percentage
Developed Market
20%
of retail shopping
is online
Emerging Market
<1%
of retail shopping
is online
Indonesian e-commerce and online transactions
in general is still newly nascent.
43. 43
80 mil
Internet users
55 mil
Consumers joining
middle class
35% growth
in mortgage lending
Indonesia’s demographic bonus.
Millions of young people joining the middle class, going online
and beginning to save and consume.
$ 565 bio
Forecasted size of
savings and
investment market in
2030
50%
of population is
under 30 years of age
24% growth
in insurance
premiums
26% growth
in consumer lending
22% growth
in Credit card
transaction value
45. 45
Connectivit
y
Logistics,
Human
Capital, and
Last Mile
Payments
Structural Root
Issues…
Paper-
based
systems
Lack of
infrastr
ucture
Antiquat
ed
regulati
on
Low
Trust,
poor
consume
r
protecti
on
PoorPoor
nationalnational
educatioeducatio
nn
standarstandar
dsds
Growth constraints for Internet business in
Indonesia
46. 46
But the winds of change are
blowing…
ICT
Initiative
s
eServices
Business-
friendly,
from our
industry,
open to
innovation
Mobile
Payment
eVoting,
eTax,
eApplicatio
ns,
eHealth
51. 51
kyat Indonesia (BRI) :
vans + 10K permanent branches
micro lending alone (7M micro credits customers)
pportunity : USD 50B/year
ng is proxy for branchless banking with massive op
FinTech-enabled innovation –
what is needed?
Full-service branchless banking, microfinance,
inclusion
52. 52
BANKED:
40% of Indonesian Adults
1600 microbanks, few hundreds multi finance
FinTech-enabled innovation –
what is needed?
Credit Scoring for Banked and Non-Banked Data Sources
UNBANKED:
60% of Indonesian Adults
56. 56
Center for Middle Class Consumer
Studies /CMCS (2013):
“The wealthier Indonesian moslem are, the more religious
they become”
87%
of middle class
in Indonesia are
Moslem
2012
(mn people)
2020
(mn people)
Jump 26.6mn
Jump 26.1mn!
Jump 36.2mn!
BCG Report
FinTech-enabled innovation –
what is needed?
Indonesian Moslem Middle Class Consumer
57. 57
rently only has around 5% market size
Islamic Banks are growing faster than
Conventional Banks in Indonesia
Statistik Perbankan Syariah 2014
73. „There are two reasons why I believe
Indonesia is one of the most important
markets to enter. From hiring
standpoint, there is already a
substantial amount of talent based in
Indonesia. More importantly,
Indonesia is a booming economy.
Early presence might convert to a
leadership status in following years
for any company entering Indonesian
market.”
74. „Poland is known for big number of
excellent engineers and Polish
companies - for ability to build great
products and outstanding IT solutions.
Indonesia on the other hand, is a
growing, booming market which has a
great need for technology to solve
even the most simple challenges.”
76. „Developing a
startup in
Indonesia is fun.
Emerging
markets tend to
have relatively
high barriers to
entry, but these
can be
construed as a
competitive
advantage to
those savvy
enough to
successfully
navigate them.”
Remarks: Islamic Bank in Indonesia has only reached around 5% in its market size,
(e.g.: Islamic Banks found it is difficult enough to build branch offices in regional area due to its limited capacity to expand (lack of HR and capital, etc), even we can see that there is not enough ATM in big cities)
Remarks: Islamic Bank in Indonesia has only reached around 5% in its market size,
(e.g.: Islamic Banks found it is difficult enough to build branch offices in regional area due to its limited capacity to expand (lack of HR and capital, etc), even we can see that there is not enough ATM in big cities now)
Difficult to do business
Need a local partner
XX Days to set up a company
Foreign talent laws are constantly changing
Local partners are essential
There will be a scarcity of talent, as more and more companies come in and crowd the industries
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