Friday, 27 September 2019

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 basic 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 a detailed overview of 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 the forecasted period.
Market Segmentation
Domestic Remittance Market
The domestic remittance market of Indonesia has witnessed a tremendous growth over the past few years. The 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 the 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 the 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 the domestic market in terms of volume of transactions in 2018. In Indonesia, the choice of the 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 the market has shown a tremendous increase in growth rate overall, whereas; inbound market showed a major growth and a slight decrease was observed in the outbound segment during the year 2018. The total transaction value expanded displaying a five-year CAGR of close to 8.0%. Moreover, a surge in Fintech startups and government rolling out mobile payments application contributed to this development. The 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 improvement in level services provided by the remittance companies during the review period 2013-2018.
By Inbound & Outbound: The Indonesia International remittance market witnessed the majority of its contribution from inbound remittances from Indonesia in the year 2018. Improvement in the 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 the inflow of remittance when compared to an outflow of remittance in terms of the transaction volume in 2018. International remittance market was found to be moderately concentrated with the 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 exceptional growth in the review period of 2013-2018 and is further expected to display similar growth in the 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 the development of Fintech and digital payments services such as M-wallets and E-money in Indonesia.
Key Segments Covered:-
International Remittance Market
By Flow Type
Inbound
Outbound
By Channel
Bank
Non-Bank
By Major Flow Corridors
ASEAN
Asia Excluding ASEAN
Middle East
America
Europe
Australia & Oceania
Africa
By Income Level
Lower Level Income Group
Middle Level Income Group
High Level Income Group
Domestic Remittance Market
By Remittance Channels
Banks
Non Banks
By Major Flow Corridors
Urban to Rural Areas
Rural to Rural Areas
Urban to Urban Areas
By Income Level
Lower Level Income Group
Middle Level Income Group
High Level Income Group
Snapshot Bill Payment Market
By Type of Bills with Type of Families Spending
Very Conservative Family (Water, Electricity, Healthcare, Others)
Mediocre Family (Water, Electricity, Healthcare, Digital Products, Others)
Key Target Audience:-
Money Transfer Operators
Banks
Pawnshops
Bill Payment Companies
M-Wallets
Mobile Money Companies
Central Bank
Investors and PE Firms
Convenience Stores
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023
Companies Covered:-
Major Bank and Non- Bank Channels in Indonesia:-
Bank Mandiri
Bank Central Asia
Bank CIMB Niaga
Western Union
MoneyGram
Top Remit
OVO m-wallet
GoPay
Western Union
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
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