A special joint office FinTech has been established to continue the collaborating in developing of the industry in Indonesia. UnionSPACE CEO Albert Goh expressed the inauguration ceremony which was also accompanied by the National Working Meeting of the Association of Indonesian Fintech (AFTECH) will be the container 130 FinTech pioneer company in Indonesia.
The finance gap for micro-SMEs was estimated at US$166 billion or 19% of GDP in 2017, even though the micro-SMEs have an important role in Indonesia’s economy. There are 58 million micro-SMEs in Indonesia that employ 89% of the private sector workforce and contributes to 60% of the country’s GDP.
Currently, there are 64 registered FinTech that pocketed Financial Service Agency permission to disburse loans. However, Indonesia FinTech Association recorded 235 FinTech companies as its members with over half of those established in the last two years. Digital payments by FinTechs have reached a total transaction value of US$21 million.