Indonesia less cash society
The disruptive progress of
IT and globalization have a considerable influence on the economic system, both
macro and micro economics. Among the systems that significantly affected the
micro-economic level is the payment system. Advances in information technology
have encouraged the presence of various payment instruments which are
innovative, efficient, low-risk and easy to use. However, Indonesia is still
lagging in access to financial products and services, as reflected in the
survey of global finance index in 2011, which showed that only 20% of Indonesian
adults who have access to financial services of formal financial institution
(World Bank, 2011). Meanwhile, Indonesian government has launched a financial
transformation discourse towards a less cash society since May 7, 2008. In line
with the trend of non-cash transactions that have been adopted by Southeast
Asia countries, such as Thailand as a comparative country for Indonesia.
Thailand's
macroeconomic indicators have a similarity with Indonesia, so even with their
penetration of mobile phones. In 2011, with its mobile phones and electronic
money growth, Thailand has reached 73% in inclusive finance, while Indonesia still
20% (World Bank and ITU, 2011). True Money is one of the successful mobile
payment services to shift the dominance of cash transactions in Thailand
(Leishman, 2014). In 2012 aggregate national payment system report of Bank of
Thailand, e-money transactions volume was ranked 3rd after the electronic card
and retail transfers, and in 2013 rose to second place. When compared with the
transactions in Indonesia, e-money transactions volume is still under Thailand.
|
Indonesian government
has encouraged various efforts to increase non-cash micro-payment instruments with
technology based, and the expansion of more innovative financial inclusion.
Micro-payment instruments are designed to serve the small-value payments with
the use of a high frequency with a very quick payment process. At this time,
e-money is the most appropriate solution for micro payment instruments (Hidayat,
et al. 2006). According to data of Bank Indonesia, up to November 2014 there
were 20 providers of e-money which has obtained a license from Bank Indonesia,
and three of them are mobile providers, i.e. PT. Telkomsel, PT. Indosat, Tbk,
and PT. XL Axiata Tbk.
According to the International Telecommunication Union (2014) statistical data growth of cellular subscribers in Indonesia from year 2000 to 2013 has rose very high, as well as penetration or mobile phone ownership. This mobile services growth potential to synergize with the inclusive financial access solutions expansion based on cellular technology through mobile payment services, which can reach all coverage of Indonesia wider than formal financial services network owned by banks. The non-cash financial service providers, particularly e-money which is run by mobile operators will get a lot of business opportunities of this system, depend on the perspective of business and assuredness risks are taken, and depend on the regulations of each country's financial authorities. The non-cash financial services also will provide many advantages for the operators, especially for mobile providers, such as new customer acquisition, revenue sources in addition to its core business, increase customer usage, reducing customers churn to competitors, as well as the opportunity to increase sales (Sutadi, 2012).
May 2013, three Indonesia mobile operators agreed to
allow interoperability between their
mobile payment system. In the future, the high level of interoperability can enable
operators to take on additional roles, such as a retail agent can act as an agent while also
receiving payment of goods and services from the end user. Growth will be far beyond
the scope of remittance and payment of other bills. As the industry foresight,
virtual currency that is prepaid and direct carrier billing can be done by all providers as an important
payment instrument (Ernst and Young, 2014). Indonesian
GDP has reached USD 3,000 since 2011, in line with Nielsen survey results that will
give birth to a new people class called the middle class. The consequences of
these conditions is the increase in consumer spending in all aspects, including
fresh food, transportation, and telecommunications (Nielsen in Boediman, 2014).
Based on the study results of a e-money in Jakarta in 2012, obtained a
projection that if e-money is effective run, the potential use of it is in
total amounting to IDR 24 trillion per year for daily needs, consisting of IDR
23.4 trillion in the transport sector (Busway, KRL, taxis, road tolls, fuel and
parking) and IDR 600 billion in the sectors of food / drinks. In addition, the
increase in economic activity among the member countries of ASEAN Economic
Community (AEC) will require a payment system and final settlement to
efficiently support business transactions, which can accommodate cross-border
transactions and regional financial integration (Bank Indonesia, 2012). The
challenges that were faced today are access to technology, investment costs,
business models, security, and above all else is the regulation. On the
application of a business model of electronic money systems, mobile providers
who wish to cooperate with financial institutions rely heavily on the
regulatory aspects of the country where the system is operated. If the agency regulation
complicates the providers to manage their finances and serve customers, as a prevention
consequences of money laundering criminal acts, the business model of
electronic money will not be executed.
This facts and phenomenon
leaves question and opportunity for all stakeholders to be its sustainability
in the future. Gap that may have occurred between internal capabilities and
strategies of mobile payment services business models in this country with the
environmental changes such as the market demand, technology, core competencies
and regulations as environmental changes or even turbulence. Strategic
diagnosis can be a guidance to the right way on the path of winner, who will
answer questions; why until now the use of mobile payment is still low although
the potential of e-money transactions from mobile business is very large, on
the other hand the government has launched a program that is aligned i.e. Less
Cash Society since 2007, and what the cause of the low? How is the fit analysis
between internal capabilities and strategies of mobile payment services
business model that appropriate to Less Cash Society as turbulence
environmental change? How is the optimal development of mobile payment services
business model?
Reference:
Boediman. 2014. Indonesia digital
landscape study 2012. Ideosource venture
capital and incubation.
Bank Indonesia. 2014. Information of
Licensed Operators and Payment System Support Service.
Ernst and Young. 2014. Mobile money
the next wave of growth. Optimizing operator approaches in a fast-changing
landscape. EYG. 134(1276530).
Hidayat, et al. 2006. Efforts to increase the use of non-cash payments
through the development of e-money.
International Telecommunication
Union. 2014. ICT statistics fact and figure. Telecommunication Development
Bureau.
Leishman P. 2014. True Money and
M-PESA : Two unique path to scale. GSMA
Research.
Otoritas Jasa Keuangan. 2013. Press
releases Financial Services Authority strengthen efforts to expand financial
inclusion and access to finance through financial literacy.
Sutadi H. 2012. Rolling out digital payment
platforms – An Indonesian perspective. 17th
Annual Cards and Payment Asia.
The World Bank. 2012. Measuring financial
inclusion: The global finance index. World
Bank Policy Research Paper 6025.
Halo selamat Siang,
ReplyDeletePerkenalkan nama saya Lauren, manajer afiliasi untuk InstaForex Group.
Disini saya ingin menawarkan Anda untuk bergabung dalam program afiliasi yang memberikan Anda keuntungan komisi mulai dari 1.5 - 5.3 pip untuk Forex dan mencapai 20 - 26 pip untuk Gold.
Selain keuntungan tersebut kami juga dapat menawarkan fasilitas lainnya untuk memfasilitasi deposit dan penarikan dana untuk klien-klien Anda.
Saya menunggu kabar baik dari Anda segera.
Silakan menghubungi saya melalui detil yang terdapat di bawah.
Kami akan senang untuk membangun kerja sama yang saling menguntungkan dengan Anda.
Terima kasih.
Hormat saya
Laurent
ID Skype: Lauren InstaFX
Facebook: Lawrence Instaforex
Phone/WA: +628119105674
Email : Lauren@mail4.instaforex.com
www.instaforex.com