Indonesia Turns To Digital Finance To Reach Unbanked Population

Indonesia, home to one of the world’s largest unbanked and underbanked populations, is pushing to enhance financial inclusion.

“In Indonesia, the role of digitalisation is essential,” said Kartika Wirjoatmodjo, chairman of the board and president commissioner at PT Bank Rakyat Indonesia, at the China Conference: Southeast Asia 2026 in Jakarta on Tuesday.

PT Bank Rakyat Indonesia is the oldest bank in the country and has made expanding financial inclusion in the Southeast Asian nation a top priority.

His remarks came after Indonesia’s Financial Services Authority outlined three policy priorities earlier this month: strengthening the resilience of the financial services sector, developing a contributive financial services ecosystem and deepening sustainable finance.

Meanwhile, across Asia, owners of small and medium-sized enterprises are taking advantage of digital financial services to borrow money, settle payments and establish digital profiles, according to business representatives from Singapore-based financial technology firm Ant International and Hong Kong-based insurance company FWD, who spoke on the same panel.

According to Ant International, it had solidified its Asian user base through “digital footprints” and drew on experiences in China and beyond. China, it noted, had “the largest sample size in terms of population”.

Ant International is the global subsidiary of Ant Group, the Hangzhou-based financial services affiliate of Alibaba Group, which owns the South China Morning Post.

To tap the growing Indonesian market, FWD has been a pioneer, entering into a strategic partnership with PT Bank Rakyat Indonesia since 2020 to develop its life insurance business there, while leveraging the bank’s large customer base and extensive marketing channels.

Through its 44 per cent minority investment in BRI Life, a subsidiary of PT Bank Rakyat Indonesia, FWD Group collaborates with the Indonesian bank to prioritise serving micro, small and medium-sized enterprises, positioning the partnership as a champion of financial inclusion.

FWD Group’s initial 29.9 per cent investment in BRI Life was completed in March 2021. In the first two years of the partnership, BRI Life became the third largest life insurance company in Indonesia and ranked number one in bancassurance.