.svg)
Indonesia's financial landscape is enduring a major evolution, driven bythe rapid adoption of artificial intelligence (AI) in financial technology (Fintech).Fintech is expanding digital financial services, increasing financialinclusion, and fostering innovation in key areas such as digital payments,digital wallets, wealthtech, insurtech, and peer-to-peer (P2P) lending. Thisgrowth is backed by foreign investment, government funding, and privateinvestors, making Indonesia a dynamic hub for fintech development.
Indonesia'sfinancial sector is undergoing a substantial change driven by the adoption ofartificial intelligence (AI). AI is accelerating digitalization, expandingfinancial inclusion, and fostering innovation across various sectors, includingdigital payments, digital wallets, wealthtech, insurtech, and peer-to-peer(P2P) lending. Funding from foreign investors, government support, and privatesector participation further strengthens this growth.
Theimplementation of AI in the financial zone has contributed to increasingfinancial inclusion in Indonesia. The financial enclosure rate rose from 49% in2014 to approximately 83% in 2024, equivalent to integrating a population seventimes the size of Switzerland into Indonesia’s banking system.
Fintech Growth and Foreign Investment
Indonesia’sfintech sector has witnessed rapid growth, with the number of fintech companiesincreasing from 51 in 2011 to 336 in 2024 according to the registration ofcompanies in Indonesia, Cekindo. Foreign investors haveshown strong interest, with equity funding reaching $1.5 billion in 2023. Accordingto Boston Consulting Group, of this amount, more than $500 million wasallocated to wealthtech firms, reflecting investor confidence in thissub-sector. Leading investors include Sequoia Capital, SoftBank, and GIC, whichhave invested heavily in Indonesian fintech startups.
Additionally,Singapore-based Grab acquired a majority stake in Indonesia’s Ovo, one of thecountry's leading digital wallet providers, further reinforcing the region’sattractiveness to global investors. Other fintech giants such as GoTo(Gojek-Tokopedia) and Sea Group (ShopeePay) have also received significantbacking from international funds.
AI-Driven Innovation in Digital Payments and Wallets
AIhas driven innovation in digital payments and wallets. Platforms like GoPay,OVO, and Dana have transformed the way Indonesians transact, enabling moneytransfers, bill payments, and purchases via smartphones. In 2023, e-commercetransactions reached $51.9 billion, while QR payment transactions surged to IDR98.5 trillion, demonstrating the success of QR interoperability across banksand digital wallets.
AI in Wealthtech and Insurtech
Inwealthtech, AI is used to provide personalized investment recommendations andautomated portfolio management. Companies like Ajaib and Bibit leverage AI tohelp users make better investment decisions. Meanwhile, in insurtech, AI isutilized to assess risk and process claims efficiently, enhancing customerexperience and reducing operational costs claims.
Public Response
Indonesia’sfintech revolution has significantly reshaped the financial habits of itspeople:
- Digital Payments & Wallets: The adoption of cashless payments has surged, with over 300 million digital transactions occurring monthly. QR payments and e-wallets are now widely accepted, even by small businesses.
- Wealthtech: Apps like Bibit and Ajaib have democratized investing, allowing users to buy stocks and mutual funds with minimal capital.
- Insurtech: Platforms like Qoala and PasarPolis are making insurance more accessible by offering affordable, on-demand policies.
- P2P Lending: Services like Investree and Modalku have provided much-needed credit to small and medium enterprises (SMEs), disbursing billions of dollars in loans to businesses that previously lacked access to formal banking.
FintechCompanies Connecting with AI
Thesecompanies are harnessing AI to drive innovation, improve accessibility, andenhance user experiences in their respective domains. It's exciting to see howAI is shaping the future of technology and finance in Indonesia.
LinkAja - This electronic payment service integrates AI toenhance transaction security and user experience, making financial transactionsseamless and efficient.
Kredivo – This is a digital credit platform that uses AIfor credit scoring, enabling users to access credit quickly and securely.
Akulaku - This company is focused on creating acomprehensive financial ecosystem, Akulaku employs AI to personalize financialservices and improve customer engagement.
PAYFAZZ – This is an agency-based financial platform thatuses AI to facilitate digital transactions and optimize payment processes.
Logitech – This organisation has been leveraging AI to enhance hybrid workenvironments. They introduced AI-powered tools like Logitech Sight, a camera thatoptimizes video conferencing by improving visual quality through automatic colourcorrection and glare reduction. Additionally, their Logitech Sync platform uses AIto track user habits during meetings, adjusting camera angles and zoomautomatically to improve collaboration.
KoinWorks – This is a financial lending platform thatleverages on AI to assess creditworthiness and provide tailored lendingsolutions for small and medium-sized businesses.
Government Role and Regulations
TheIndonesian government, through Bank Indonesia, has introduced the IndonesiaPayment System Blueprint 2025 to accelerate the digitalization of the economyand financial sector. This initiative aims to create a secure, efficient, andinclusive payment ecosystem, supporting digital economic growth.
WhileAI adoption brings numerous benefits, challenges such as digital divide and lowdigital literacy remain obstacles. Limited internet access and lack ofunderstanding of technology may hinder the adoption of AI-driven financialservices. However, through collaboration between the government, privatesector, and the public, these challenges can be addressed, paving the way for amore complete and innovative financial transformation in Indonesia.
AI-driventransformation in Indonesia’s financial sector has unlocked new opportunities,increased financial inclusion, and spurred innovation, positioning Indonesia asa key player in the global fintech landscape.
