Indonesia Domestic and International Remittance Market Outlook to 2023

The report titled "Indonesia Domestic and International Remittance Market Outlook to 2023 - By Inbound & Outbound Remittance, By Banking and Non-Banking Channel, By Income Level Group and By Inflow and Outflow Remittance Corridors"provides a comprehensive analysis of international & domestic remittance and snapshot on bill payments market of Indonesia. The report covers market size, segmentation on the basis of remittance inbound and outbound, remittance flow corridors, remittance channel, and basis income level group. For domestic remittance market, the report covers market size, segmentation on the basis of remittance channel, basis income level group and major flow corridors. It also includes the snapshot on bill payments market in the country covering the overview, segmentation on type of bill payment, and channel of payment. The report also covers government regulations, competitive landscape and company profiles for major banking and non-banking channels in the remittance and bill payments market. The report provides detailed overview on future outlook & projections with analyst recommendations for the industry. The report provides detailed insights on existing and future trends, issues and challenges prevalent in the industry and anticipated growth in the future depending upon changing industry dynamics in forecasted period.

Market Segmentation

Domestic Remittance Market: The domestic remittance market of Indonesia has witnessed a tremendous growth over the past few years. Rising internal migrant population both intra-regional and inter-regional owing to better job opportunities has triggered the size of the industry. During the period, 2013-2018, domestic remittance market has displayed remarkable growth at a CAGR of 5.0% in terms of transaction volume generated from personal remittance within the country.

By Bank & Non-Bank: Banks dominate the domestic remittance market compared to non-bank channels. Increasing share of non-bank channels was observed during review period as it grows with a CAGR of 6.3% during the period 2013-2018. Also, growing popularity of using digital platforms for transfers such m-wallets of Gopay and OVO m-wallet.

Competitive Landscape in Domestic Remittance Market

Indonesia domestic remittance market is moderately concentrated with the presence of multiple players including money transfer operators, banks, M-wallets and postal networks. Among banks that are operating in the domestic market, Bank Mandiri and Bank Central Asia holds a major share of the market in terms of volume of transactions carried via banks during the year 2018. The Bank Mandiri dominated domestic market in terms of volume of transactions in 2018. In Indonesia, the choice of channel varies along with the type of remittance i.e. whether it is domestic or international. Domestic remittance market is dominated by banks in terms of volume of transactions, as customers prefer banks owing to their wider accessibility and security, with experience in domestic market.

International Remittance Market Overview:

The international remittance market has showed a tremendous increase in growth rate overall, whereas; inbound market showed a major growth and slight decrease was observed in outbound segment during the year 2018. The total transaction value expanded displaying a five year CAGR of close to 8.0%. Moreover, surge in Fintech startups and government rolling out mobile payments application contributed to this development. Volume of remittance transactions increased, registering a CAGR of close to 5.0% during 2013-2018. With increasing competition between banks and non-bank channels, a decrease in commission was observed along with improve-ment in level services provided by the remittance companies during review period 2013-2018.

By Inbound & Outbound: The Indonesia International remittance market witnessed majority of its contribution from inbound remittances from Indonesia in the year 2018. Improvement in global remittance market has helped overseas Indonesian workers to find better jobs in GCC countries and ASEAN countries to remit money home through different channels.

Competitive Landscape in Indonesia International Remittance Market

Indonesia International Remittance market has been majorly dominated by inflow of remittance when compared to outflow of remittance in terms of transaction volume in 2018. International remittance market was found to be moderately concentrated with presence of both international and domestic money transfer operators and banks. Both bank and non-bank channels are actively working in the international remittance market.

Future Potential of Indonesia Remittance Market

Both domestic and international remittance market has seen an exceptional growth in the review period of 2013-2018 and is further expected to display similar growth in forecasted period of 2018-2023 along with CAGR value of 11.0% and 11.8% in terms of transaction volume respectively. The rising infrastructural & developmental activities undertaken by the government and rising business sector investment in the country are anticipated to foster growth in the domestic remittance market in the country. Also, rising mobile phone and internet penetration will propel the growth of market which will support development of Fintech and digital payments services such as M-wallets and E-money in Indonesia 

Key Topics Covered in the Report

• Indonesia Domestic Remittance Market Size (2013-2018)
• Indonesia Bill Payments Market Snapshot (2013-2018)
• Indonesia International Remittance Market Size (2013-2018)
• Indonesia Remittance Market Overview
• Indonesia Remittance Market Ecosystem
• Indonesia Remittance and Bill payments Market Segmentation (2013-2018)
• Trend and developments in Indonesia Remittance and Bill Payments Market
• Competitive Landscape of Major Players in Indonesia Remittance Market including Market Shares and Strength & Weakness of the major Remittance players in Domestic and International Market
• Future Outlook and Projections of Indonesia Domestic Remittance Market (2018-2023E)
• Future Outlook and Projections of Indonesia International Remittance Markets (2018-2023E)
• Analyst Recommendations