Consumer Finance in Indonesia
Euromonitor International's Consumer Finance in Indonesia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 150 | Publication date: Jun 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Battle in the promotion of credit cards in shopping centres
Endless promotional activities have been conducted by credit card issuers to keep expanding their consumer bases and stimulating more credit card transactions. The development of more shopping centres in Indonesia has induced more people to spend their free time in malls and drive more expenditure. Due to the high visitation, several major issuers open up booths to promote and offer credit cards to more people in the malls. In addition, they have also cooperated with numerous retailers and restaurants located within the malls to offer discounts of up to 50% on purchases or dining in. Due to the positive response of consumers, credit card issuers are likely to continue to carry out marketing activities in the shopping centres, thus boosting the popularity of credit cards.
Platinum cards gain popularity
In recent years, the banking industry has slowly started to target another high potential market – the high-class Indonesians. It is believed that the wealthy segment tends to have fewer problems with credit card debts – hence making them an attractive target group. To accommodate the lifestyle of these people, a number of Platinum credit cards have been issued. Bank Indonesia reported that in 2007, seven major issuers launched Platinum credit cards, which offer attractive benefits and facilities for upper-class consumers, such as free access to international airport lounges, life insurance, medical insurance and concierge services. The number of Platinum credit cardholders is expected to increase in the future, thus fuelling credit card transaction growth in Indonesia.
Effort to create cashless society through pre-paid cards
Since 2000, several banks have introduced pre-paid cards, such as Permata Bank e-wallet and BCA Flazz card, to provide an alternative to cash for Indonesians. A survey conducted by BI in 2007 revealed that people were weary of the need to carry cash, illustrating a high acceptance of pre-paid cards, particularly for micropayments. However, the growth of pre-paid cards is as yet muted due to the lack of consumer awareness and low merchant acceptance. Despite this, it is reported that 10 major Indonesian banks have proposed to launch more multipurpose pre-paid cards for micropayments, such as toll payments and parking fees, thus boosting pre-paid cards’ performance in Indonesia.
Rules relaxed to support banks’ expansion plans
In March 2008, Bank Indonesia reported amendments to legislation regarding Commercial Banks, thereby relaxing administration regulations. It is hoped that this will make it easier for banks to expand their networks. Bank Indonesia believes that the banks’ branch offices are crucial in distributing products and services. Also, the policy aims to encourage large banks to expand their networks into regional and rural areas without banking services and consequently, create economic activity in such areas.
The Unbanked Represent Great Opportunity
With more than half of the Indonesian population currently “unbanked” the opportunities for expansion of financial cards is virtually limitless. Most of these “unbanked” reside in rural areas, which banks appear to so far be disinterested in competing. With the urbanisation of Indonesia becoming an increasingly dominant trend, the growing number of people living in urban areas and aspiring to a more consumerist lifestyle shall guarantee strong growth in financial card issuance over the forecast period.
Table of contents
CONSUMER FINANCE IN INDONESIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Battle in the promotion of credit cards in shopping centres
Platinum cards gain popularity
Effort to create cashless society through pre-paid cards
Rules relaxed to support banks’ expansion plans
The Unbanked Represent Great Opportunity
KEY TRENDS AND DEVELOPMENTS
Credit Cards Popularity Booms Due To Heavy Promotion
The rise of Platinum Credit Cards
Pre-paid cards for micropayments
Credit Card Fraud Inspires Rush To “Smart Cards”
Large banks to expand branch networks as Bank Indonesia eases regulations
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN INDONESIA
EXECUTIVE SUMMARY
Consumer lending enjoys continuous demand
Bank Indonesia supports consumer lending
Card lending registers vigorous value growth in 2008
Mortgages and auto loans continue to dominate consumer lending
Education loans make their debut
KEY TRENDS AND DEVELOPMENTS
Urbanisation continues to create demand
Instalment payment schemes fuel card lending growth
Auto lending competition: banks vs auto finance companies
Education loans: Indonesia’s new lending innovation
New BI lending regulations
The competitive landscape intensifies in mortgages
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - INDONESIA
BANK CENTRAL ASIA TBK PT - FINANCIAL CARDS AND PAYMENTS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Bank Central Asia PT: Key Facts
Summary 4 Bank Central Asia PT: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Bank Central Asia PT: Competitive Position 2007
BANK INTERNATIONAL INDONESIA TBK, PT - FINANCIAL CARDS AND PAYMENTS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Bank International Indonesia PT: Key Facts
Summary 7 Bank International Indonesia PT: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Bank International Indonesia PT: Competitive Position 2007
BANK MANDIRI (PERSERO) TBK, PT - FINANCIAL CARDS AND PAYMENTS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Bank Mandiri PT Persero Tbk: Key Facts
Summary 10 Bank Mandiri PT Persero Tbk: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Bank Mandiri PT Persero Tbk : Competitive Position 2007
BANK NEGARA INDONESIA (PERSERO) TBK, PT - FINANCIAL CARDS AND PAYMENTS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Bank Negara Indonesia (Persero) Tbk: Key Facts
Summary 13 Bank Negara Indonesia (Persero) Tbk: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 Bank Negara Indonesia (Persero) Tbk: Competitive Position 2007
BANK NIAGA TBK, PT - FINANCIAL CARDS AND PAYMENTS - INDONESIA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 PT Bank Niaga Tbk: Key Facts
Summary 16 PT Bank Niaga Tbk: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 PT Bank Niaga Tbk: Competitive Position 2007
ATM TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
CONSUMER CREDIT IN INDONESIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Consumer Credit By Sector: Outstanding Balance: Value 2003-2008
Table 127 Consumer Credit By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 128 Consumer Credit By Sector: Gross Lending: Value 2003-2008
Table 129 Consumer Credit By Sector: Gross Lending: % Value Growth 2003-2008
Table 130 Forecast Consumer Credit By Sector: Outstanding Balance: Value 2008-2013
Table 131 Forecast Consumer Credit By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 132 Forecast Consumer Credit By Sector: Gross Lending: Value 2008-2013
Table 133 Forecast Consumer Credit By Sector: Gross Lending: % Value Growth 2008-2013