In this webinar, Ms Puput Hidayat and Mr Manggi Taruna Habir discussed recent e-commerce and fintech trends as well as their impacts on changing consumer spending patterns and the rise of borrowings from market segments not usually touched by the traditional banking sector in Indonesia.
REGIONAL ECONOMIC STUDIES PROGRAMME WEBINAR
Wednesday, 22 December 2021 – ISEAS – Yusof Ishak Institute hosted a webinar on “The Growth of Indonesia’s E-commerce and Fintech Sector amidst the COVID-19 Pandemic” delivered by Ms Puput Hidayat, who’s leading a team of Product Managers at Tokopedia, and Mr Manggi Taruna Habir, an Independent Commissioner for three companies- PT ABM-Investama Tbk, PT Berdayakan Usaha Indonesia, and PT Adira Dinamika Multi Finance Tbk.
Ms Hidayat’s presentation focused on how the COVID-19 pandemic accelerated the transformation of Indonesia’s e-commerce market. She started with a brief overview of the extent and effectiveness of the country’s broadband footprint and network. Then she provided an assessment of the growth and nature of the e-commerce market with a comparison from before and during the pandemic. Notably, there were changes in the make-up of e-commerce consumers, the mix of goods and services purchased and the portfolio of suppliers that rely on the market and payment methods used. Ms Hidayat ended her presentation with a closer look at the trends going forward and what to expect of the e-commerce market in a post-pandemic world.
Mr Habir presented the role of FinTech and banks in Indonesia. He began with an overview of the FinTech landscape in Indonesia and the rules. Then, he provided an assessment of the growth of FinTech and banks before and during the pandemic. Mr Habir provided several reasons for FinTech’s attraction: an untapped market, no credit costs and quicker onboarding. However, he also identified the challenges associated with FinTech, such as the high risk of data and funding issues. The proliferation of illegal FinTech may also result in tighter regulations or even government institutions overseeing FinTech. Next, Mr Habir shared the impact on banks wherein FinTech’s impact may not be disruptive due to the different market focus and overlap between FinTech and the banks. However, it still serves as a wake-up call for banks to accelerate their digital and automation plans. He ended off his presentation with upcoming trends in the FinTech and banking industry in Indonesia.
The webinar concluded with the speakers answering questions posed by the audience, such as the impact of household debt as a result of the growth of E-commerce and FinTech, whether there are additional restrictions on foreign participation in the FinTech sector in Indonesia and how the social and economic stratification in Indonesia impacts digital literacy and adoption. The webinar drew an audience of 69 participants from both Singapore and abroad.