Indonesia Survey Reveals 23% Financially Included

INDONESIA
SURVEY OF USERS AND NONUSERS
OF FINANCIAL SERVICES
(YEAR 1 – CONDUCTED AUGUST-NOVEMBER 2014)
February 2015

PUTTING THE USER
FRONT AND CENTER
INDONESIA
The Financial Inclusion Insights (FII) program responds to the need identified by multiple stakeholders for
timely, demand-side data and practical insights into digital financial services (DFS), including mobile money,
and the potential for their expanded use among the poor.
The FII team conducts regular survey and qualitative research in Kenya, Tanzania, Uganda, Nigeria, India,
Pakistan, Bangladesh and Indonesia to:
• Track access to and demand for financial services generally, and the uptake and use of DFS specifically;
• Measure adoption and use of DFS among key target groups (females, BOP, rural, unbanked, etc.);
• Identify drivers and barriers to further adoption of DFS;
• Evaluate the agent experience and the performance of mobile money agents; and
• Produce actionable, forward-looking insights to support product and service development and delivery, based on
rigorous FII data.
The FII program is managed by InterMedia. Visit the FII Resource Center to learn more: www.finclusion.org.
2

TABLE OF CONTENTS
1. Executive Summary
2. Country Context
3. Indonesian Consumer Profile
4. Financial Behaviors: Savings and Economic Vulnerability
5. Access to and Use of Financial Services
6. Nonusers of Financial Services
7. Special Topics: Government Beneficiaries
8. Special Topics: Agricultural Sector
9. Special Topics: Youth
10. Special Topics: Regional Divides
11. Methodology & Research Description
12. Glossary
INDONESIA
4
10
13
24
30
40
45
51
56
63
67
70
3

INDONESIA
23% of adult Indonesians
are financially included
20%
have full-service
bank accounts*
0.1%
Have registered mobile money
accounts
4%
have nonbank financial
institution accounts**
• Overlap representing those who have multiple kinds of financial accounts is not shown.
*In addition to loans, full-service accounts offer services such as savings and insurance.
** Nonbank financial institutions that offer at least one of these services: savings, money transfers, insurance or investments.
Source: InterMedia Indonesia FII Tracker survey (N=6,000 15+) August-November 2014.
Primarily driving
inclusion
Twenty-three percent of Indonesians are financially included, driven by
bank account ownership
5

• Overlap representing those who have multiple kinds of financial accounts is not shown.
• Bank accounts that can be accessed digitally through an ATM card, mobile apps, or online are the most common form of digital financial accounts.
Source: InterMedia Indonesia FII Tracker survey (N=6,000 15+) August-November 2014.
INDONESIA
Twenty percent of Indonesians have full-service, digital financial accounts
39.3 % of adult
Bangladeshis
have full-service
financial accounts
19%
have digital access to their bank
accounts
0.1%
have registered mobile
money accounts
0.8%
have digital nonbank financial
institution accounts
(excluding credit only)
20% of adult
Indonesians
have digital financial
accounts
6

Low-cost formal financial accounts exist in Indonesia, but most prefer
informal financial services, believing formal accounts to be cost-prohibitive
INDONESIA
• Financially vulnerable population: 64% live below the $2.50/day
poverty line and 66% struggle to have their monthly savings exceed
their debts.
• Misperceptions of the cost of formal account ownership: At
least a third of individuals using informal financial services, but not
banks, have cited a lack of money or inability to afford an account as
the main reason for not moving into the formal financial sector.
• Prevalence of cash/cash-based society: Very few transactions are
conducted through mediums other than cash. Even among bank
account holders, 93% have the option to access their accounts
digitally but 73% prefer to access their accounts over-the-counter in a
bank branch.
• Easy access to informal substitutes for digital and formal
financial services: Access to informal means of savings and
borrowing reduces the imperative for Indonesians to seek
formal/digital means to access such services.
• Better awareness-building around low-cost
options such as Tabunganku accounts can help
counter perceptions that having a bank account
is not affordable.
• Ways to design and promote incentives for banks
to promote existing low-cost services to poor
customers should be explored.
• Financial inclusion advocates could explore
campaigns to educate potential customers about
the variety of DFS products that can address
different financial needs, including generating
savings.
• Efforts could be made to catalyze the
development of a digital payments ecosystem
that include helping merchants move toward
accepting digital payments.
CHALLENGES POSSIBLE ACTIONS
7

Existing technical literacy and financial behaviors among users and
nonusers of financial services suggest opportunities for growth
INDONESIA
• Many use nonbank financial services: 20% of Indonesian adults
have used nonbank financial services but have not used formal
banks or mobile money providers.
• Relatively high access to mobile phones: 62% of Indonesians
own a mobile phone and an additional 14% borrow a phone if they
need one.
• Technical literacy is not a major obstacle: 67% of those with
access to a mobile phone use their devices for advanced functions.
Over half can conduct these functions without help.
• Financial behaviors are similar for those using, not using
financial services: The percentages of people from each group
regularly engaging in a variety of financial behaviors are very similar.
• Opportunity for increased access to financial services, mobile
phones exists across all islands: Nowhere is the percentage of
the total population that has used any form of financial services
greater than 60 percent.
• Low-cost money transfers may be a particularly attractive
option given Indonesia’s geography.
• The spread of DFS can be aided by better
promoting how existing digital financial
products can meet the needs of the 20%
of Indonesians that only engage in
financial activities through the informal
sector.
• Financial service providers and mobile
network operators can promote financial
services available on mobile devices to
existing mobile customers, many of
whom are digitally savvy.
• Focusing on promoting the value of
conducting traditional informal finance,
such as arisans, through mobile banking
could prove an effective bridge to digital
finance.
• The logistical and geographic challenges
of cash transfers in Indonesia suggest the
potential need for low-cost domestic
remittances, but access to financial
services is a real need, even in populous
islands.
OPPORTUNITIES POSSIBLE ACTIONS
8

INDONESIA
9
Cross-country Indicators Wave 1 % Base n
% of adults (15+) with access to digital financial services (bank, nonbank or MM) 24% 6,000
% of adults (15+) with registered digital stored-value accounts (bank, nonbank or MM account) 20% 6,000
% of adults (15+) with active digital stored-value accounts 18% 6,000
% of adults (15+) below the poverty line (<$2/day) with active digital stored-value accounts 9% 3,761
% of males (15+) with active digital stored-value accounts 21% 2,367
% of females (15+) with active digital stored-value accounts 15% 3,633
% of rural males (15+) with active digital stored-value accounts 11% 1,128
% of rural females (15+) with active digital stored-value accounts 8% 1,712
% of adults (15+) who use at least one digital financial service beyond basic wallet, person-to-
person (P2P) and bill pay payments
11% 6,000
% of adults (15+) below the poverty line (<$2/day) who use at least one digital financial service
beyond basic wallet, P2P and bill pay payments
5% 3,761
% of males (15+) who use at least one digital financial service beyond basic wallet, P2P and bill
pay payments
14% 2,367
% of females (15+) who use at least one digital financial service beyond basic wallet, P2P and
bill pay payments
9% 3,633
% of rural males (15+) who use at least one digital financial service beyond basic wallet, P2P
and bill pay payments
7% 1,128
% of rural females (15+) who use at least one digital financial service beyond basic wallet, P2P
and bill pay payments
4% 1,712
% of adults (15+) who use mobile money (over-the-counter use or their own account) 0.1% 6,000
Source: InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.

Country context
INDONESIA
• Economic context: Indonesia is Southeast Asia’s most populous country at over 240 million people and the largest
economy with a GDP of over $2 trillion (PPP constant 2011 international $). Since Indonesia emerged from the
financial crisis in 1999, GDP per capita has grown, on average, nearly 4%. Poverty (at the $1.25 poverty line) has
been cut in half, from 24% of the population to approximately 12%. However, more than 60% of the population
continues to live on less than $2.50 a day.*
• Digital financial services (DFS) or Layanan Keuangan Digital (LKD): Mobile money products have been
available in Indonesia since 2007 but uptake has been very limited in what has been a complicated regulatory
environment. In mid-2014, the country’s central bank, Bank Indonesia (BI), updated its regulations. These
amendments had an increased focus on advancing financial inclusion through e-money, providing greater clarity for
current and potential providers of DFS.
• Key regulatory bodies: BI and the relatively new government agency, OJK, created in 2014, are the two primary
regulators for financial services and e-payments in the country.
– The Ministry of Finance, Ministry of Social Affairs, National Development Planning Agency (Bappenas), National Team for
the Acceleration of Poverty Reduction (TNP2K), and the National Procurement Agency are all government agencies and
institutions that have been active in advocating for increased financial inclusion and the use of DFS.
– BI’s 2014 amendments to its 2009 regulations on e-money created a new category of DFS, specifically for financial inclusion.
One aspect of the new amendments is to allow large banks to appoint individual agents. (Bank Indonesia)
– Another significant activity was the launch of a series of e-money pilots in October 2014. These saw two banks use DFS to
disburse G2P payments in four provinces – Jakarta, West Java, East Java, and East Nusa Tenggara. (Bank Indonesia)
11
*Sources: World Bank World Development Indicators 2013; InterMedia Indonesia FII Tracker survey (N=6,000, 15+) August-November 2014.

Country context
INDONESIA
• Mobile money:
– Indonesia has three mobile money services attached to mobile network operators (MNOs). These are T-
Cash from Telkomsel, Dompetku from Indosat, and XL Tunai from XL Axiata. T-Cash was first on the
scene in 2007. In May 2013, the three services agreed to enable interoperability of their mobile money
networks. Interoperability allows customers to send and receive money across networks, and to store the
value digitally rather than being required to cash out at an agent’s location. Additionally, customers can
purchase airtime across the different operators (GSMA). However, the murky regulatory environment, up
until the revised 2014 amendments, made widespread promotion of the services a tenuous proposition.
• Banks’ role in promoting financial inclusion:
– In 2010, Bank Indonesia required banks to begin providing no-frills savings accounts (savings accounts with
a low initial deposit and no monthly administrative fees) called TabunganKu accounts. Uptake of the
accounts has been relatively limited; as of 2014, banks reported 11.7 million Indonesians had signed up for
TabunganKu accounts. Anecdotal evidence suggests lingering perceptions of bank accounts as being too
expensive and a lack of awareness of available financial services have prevented more rapid uptake of the
services. (The Jakarta Post, OECD)
– With the 2014 regulatory amendments and piloting of e-money and branchless banking, banks are in a
better position to begin working with individual agents to offer financial services to communities where a
brick-and-mortar bank branch may be too costly.
12

INDONESIA
13
INDONESIAN CONSUMER PROFILE

Survey demographics
INDONESIA
Demographic % of Survey (N=6,000)
Male 49
Female 51
Urban 53
Rural 47
Above the $2.50/day poverty line 36
Below the $2.50/day poverty line* 64
Ages 15-24 23
Ages 25-34 23
Ages 35-44 21
Ages 45-54 16
Ages 55+ 18
2.50$
15-24
25-34
35-44
45-54
55+
Age groups add to 101% due to rounding that occurs when the data has been weighted to national proportions.
*When calculated at the $1.25/day poverty line, 12% of adult Indonesians are below the poverty line. Poverty data in this report is based on $2.50/day poverty line.
2.50$
14

58%
80%
36%
57% 58% 59%
57%
Total
population
N=6,000
Male
n=2,367
Female
n=3,633
Urban
n=3,160
Rural
n=2,840
Above
poverty line
n=2,239
Below
poverty line
n=3,761
More than half of Indonesian adults are employed, but the workforce is
disproportionately men, vs. women
INDONESIA
Employment demographics
(Shown: Percentage of each subgroup, N=6,000)
15

Owning or working on a farm is common, especially among rural
and below-poverty populations
Primary jobs of adult Indonesians, by demographic (% of employed subgroups)
Total
(n=3,304)
Male
(n=1,947)
Female
(n=1,357)
Urban
(n=1,730)
Rural
(n=1,574)
Above poverty
line
(n=1,287)
Below poverty
line
(n=2,017)
Farmer/ farm worker*
30 30 29 10 51 15 38
Occasional laborer
10 11 7 10 10 4 13
Street vendor/ warung
7 4 13 9 4 7 6
Carpenter/ mechanic/
electrician
7 9 0.6 7 6 6 7
Factory employee
7 6 7 9 4 8 6
Business owner
5 4 6 7 2 9 2
INDONESIA
*Person who owns a farm or works on a farm
16

The employed are likely to have two jobs and supplementary income
sources
42%
2%
56%
3%
3%
4%
5%
6%
7%
8%
9%
Savings
Transfers/other help from parent(s)
Government benefits
Transfers/other help from
siblings/cousins/friends
Transfers/other help from a
child/children
Growing or selling agricultural
products
Interest on stocks and shares
Transfers/other help from spouse
INDONESIA
Unemployed
Employed with a second job
Employed with a single job
Sources of supplementary income*
(Shown: Percentage of employed adult Indonesians, n=3,304)
Employment rate
(Shown: Percentage of adult Indonesians, N=6,000)
*Question allowed multiple responses.
Employed with a second job: receives income from an official employer/organization; supplementary income: receives income from a non-employer source.
• 44% of employed have
at least one source of
supplementary income.
• 32% of employed adults
have just one source of
supplementary income.
• 12% have two or more.
17

The unemployed are primarily dependent on their spouse or other family
member(s) for support
0.5%
2%
2%
5%
11%
25%
43%
Savings
Transfers/support from other family
Sell/grow agricultural products
Government payments (pension,
welfare, other)
Transfers/support from a
child/children
Transfers/support from parents
Transfers/support from a spouse
INDONESIA
Secondary and other sources of income*
(Shown: Percentage of unemployed adult Indonesians, n=2,670)
Main source of money for daily expenses
(Shown: Percentage of unemployed adult Indonesians, n=2,670)
6%
7%
7%
11%
11%
13%
21%
Savings
Transfers/support from other family
Sell/grow agricultural products
Government payments (pension,
welfare, other)
Transfers/support from a
child/children
Transfers/support from parents
Transfers/support from a spouse
• 59% of unemployed adults
have at least once source of
secondary income.
• 20% have two or more
sources of secondary income.
18

INDONESIA
One-quarter lack access to mobiles; there are clear education, poverty, age
and location differences between those with and without access
62%
14%
24%
Male
Female
Urban
Rural
Above poverty line
Below poverty line
15-24 years old
25-34 years old
35-44 years old
45-54 years old
55+
Literate
>Primary education
Employed
51%
49%
58%
42%
42%
58%
25%
26%
23%
15%
11%
97%
66%
59%
44%
56%
36%
64%
18%
82%
15%
13%
15%
20%
37%
84%
25%
54%
Own/access
to mobile
(n=4,455)
No access
to mobile
(n=1,545)Mobile phone access
Literate: able to read and write
Have access to but don’t own a mobile phone
Own a mobile phone
Do not have access to a mobile phone
76% own or
have access to
mobile phones
85% of youth own/can access mobiles.
64% of persons receiving government benefits own/can access mobiles.
63% of persons receiving income from the agricultural sector own/can access mobiles.
19

INDONESIA
The ownership gap is even greater; more women, rural and lower income
consumers borrow mobiles
62%
70%
56%
72%
52%
79%
53%
14%
9%
18%
12%
16%
9%
17%
Total
(N=6,000)
Male
(n=2,367)
Female
(n=3,633)
Urban
(n=3,160)
Rural
(n=2,840)
Above poverty line
(n=2,239)
Below poverty line
(n=3,761)
Own a mobile Don't own but can access a mobile
76%
79%
74%
84%
68%
88%
70%
Mobile phone ownership and access by demographic group
(Shown: Percentage of each demographic group)
20

INDONESIA
Mobile phone users utilize a collection of advanced activities, especially MMS,
social networks and videos
Dial numbers on their phone
Send/respond to text messages (SMS)
Change settings on their phone (i.e., ringtone)
Advanced Functions
Send picture messages (MMS)
Use social networks such as Facebook, Twitter
Watch a video they downloaded onto the phone
Follow an interactive voice menu, voice commands
Follow a text menu such as for buying airtime
Use a chat application such as WhatsApp or BBM
Listen to audio they downloaded onto the phone
Post pictures online, such as via Instagram
96%
90%
84%
35%
32%
31%
24%
22%
21%
20%
19%
Ever do this
activity
• Average functions used: 7
• Average advanced functions used: 3
• 67% have conducted at least one
advanced function
Mobile phone uses
(Shown: Percentage of adults who own or have access to a mobile, n=4,455)
76%
Indonesian adults who own or
have access to a mobile
21

Dial numbers on their phone
Send/respond to text messages (SMS)
Change settings on their phone (i.e., ringtone)
Advanced Functions
Send picture messages (MMS)
Use social networks such as Facebook, Twitter
Watch a video they downloaded onto the phone
Follow an interactive voice menu, voice commands
Follow a text menu such as for buying airtime
Use a chat application such as WhatsApp or BBM
Listen to audio they downloaded onto the phone
Post pictures online, such as via Instagram
INDONESIA
There’s some need for help with advanced functions, but still many can
perform the tasks without assistance
96%
90%
84%
35%
32%
31%
24%
22%
21%
20%
19%
Ever do this
activity
Mobile phone uses
(Shown: Percentage of adults who own or have access to a mobile, n=4,455)
76%
Indonesian adults who own or
have access to a mobile
Can do activity
without help
78%
76%
60%
23%
23%
12%
13%
18%
15%
13%
11%
Those unable to either dial
numbers without help or
change phone settings are
predominantly below the
poverty line, female and
over the age of 34.
22

43%
22%
14%
INDONESIA
The top barrier to mobile phone access appears to be perceived need, with
cost a distant second
24%
I have no need for one
It is too expensive
No one in my house owns a phone
Total: 79%
Top 3 reasons individuals don’t have access to
a mobile phone
(Shown: Percentage of those without access, n=1,545 )
Demographics of those without access to a mobile phone
(Shown: Percentage of those without access, n=1,545 )
56%
Female
75%
Have not advanced
beyond primary
education
64%
Rural
82%
Below the
poverty line
72%
Live on Java
Adults without
access to a mobile
64% of the total
population lives on Java
23

FINANCIAL BEHAVIORS: SAVINGS AND
ECONOMIC VULNERABILITY
24
INDONESIA

Financial insecurity is a reality for at least half of adult Indonesians; many
are unable to cover monthly expenses or build an emergency fund
• 62% didn’t have money left over last month after paying all expenses
• 47% are rarely or never able to keep household expenses below their monthly
earnings
• 60% rarely or never have an emergency fund to cover unplanned expenses
• 34% have savings that exceed their debts
INDONESIA
25

54%
42%
48%
39%
33%
53%
43%
48%
39%
28%
40%
47%
60%
62%
66%
Rarely or never pay their bills on
time
Rarely or never spend less than they
earn each month
Rarely or never have an emergency
fund to cover unplanned expenses
Had no money leftover or had to
borrow money to pay all their typical
expenses last month
Rarely or never have savings that
are larger than their debts
Those who have never used financial services are even more vulnerable in
the face of emergencies
INDONESIA
26
Above
poverty line
(n=2,239)
Below
poverty line
(n=3,761)
Access to FS*
(n=3,043)
No access to FS*
(n=2,957)
73%
73%
67%
52%
43%
78%
80%
71%
55%
50%
Recent experiences with financial
insecurity
*FS = Financial Services. FS include formal financial services (banks, mobile money), nonbank financial services (i.e.: rural credit banks, cooperatives) and informal
financial services (i.e.: arisan, money guard).
87% experienced at least one of these insecurities.
72% have experienced two or more.

When there is money left over at the end of the month, most want to save it
2%
3%
6%
9%
10%
12%
19%
27%
37%
40%
41%
61%
Give back to the community
Other
Education for self
Get ready for retirement
Build a fund for a child's wedding
Start/expand own business
Buy luxury goods
Protect belongings
Protect family from poverty and crime
Build a fund for children's education
Make ends meet on a daily basis
To save as much as possible
INDONESIA
1%
2%
3%
3%
6%
7%
9%
69%
Paying for insurance
Vacation
Sending money to others
Investing
Other
Entertainment
Repaying loans
Save money
Primary use of surplus money each month
(Shown: Percentage of those with money left over at the end of
last month, n=2,332)
Reasons for saving money*
(Shown: Percentage of adults engaged in savings activities,
n=2,580)
64% of respondents had two or
more reasons for saving money.
27

Indonesians primarily save their money through banks, informal financial
institutions
0.3%
1.3%
6%
11%
22%
35%
55%
Mobile money
BPR (rural credit bank)
Cooperative
Other people (i.e.: family,
neighbors, shopkeepers, money
guards)
Other
IFI (i.e.: arisans)
Bank
INDONESIA
34% of respondents save money
through one of these methods.
8% use two or more methods.
(Based on all respondents)
Locations for savings
(Shown: Percentage of Indonesian adults who save, n=2,580)
28

Demographic groups have varied levels of activity across common
financial behaviors; women are most likely to conduct P2P transfers
INDONESIA
Top 5 financial behaviors in the past 90 days by demographic (% of subgroup)
Total
N=6,000
Male
n=2,367
Female
n=3,633
Urban
n=3,160
Rural
n=2,840
Above poverty
line
n=2,239
Below poverty
line
n=3,761
Buy
goods/groceries 88%
Buy
goods/gro
ceries
88%
Buy
goods/groc
eries
88%
Buy
goods/groc
eries
89%
Buy
goods/groc
eries
88%
Buy
goods/groceries
89%
Buy
goods/groceries
88%
Pay bills
83%
Pay bills
82%
Pay bills
84%
Pay bills
84%
Pay bills
82%
Pay bills
84%
Pay bills
82%
Buy airtime
60% 65% 55% 68% 51% 73% 53%
P2P transfers
58% 40% 75% 59% 55% 61% 56%
Receive wages
55% 72% 39% 53% 57% 54% 55%
Cash is the most common method for conducting all of these transactions.
Among these five categories, cash is least common for receiving wages
(96%) and most common for buying goods and groceries (99%).
Buying goods/groceries and paying bills are the most and second most common financial behaviors for
each demographic group at approximately the same percentages as the entire population.
29

ACCESS TO AND USE OF FINANCIAL
SERVICES
INDONESIA
30

INDONESIA
49%
29%
22%
19%
0.1% 0.1% 0.1%
32%
27%
Total Access
(ever used)
Ever used a
bank account
Bank account
holders
Active bank
account
holders
Ever used
mobile money
Registered
MM account
holders
Active
registered
MM account
holders
Ever used an
NBFS
Active use of
NBFS
Bank, mobile money (MM) and nonbank financial services (NBFS)* access and use
(Shown: Percentage of Indonesian adults who fall into each category, N=6,000)
Nearly half have access to financial services mostly through traditional banks
and NBFS; account holders and active use are lower
Mobile moneyBanks NBFS
*NBFS (nonbank financial services) are defined as any financial service outside of fully formalized banks and mobile money providers. Within
NBFS, two distinct groups are included – nonbank financial institutions (NBFIs) and informal financial institutions (IFIs). NBFIs include rural
credit banks (BPR), cooperatives/venturas, pawn shops, and post office banks. IFIs are any of a number of informal means to accessing
financial services, such as arisans, money guards, etc.
31

19%
22%
16%
27%
10%
35%
10%
3% 3% 3% 3%
3% 3% 3%
Total
population
N=6,000
Male
n=2,367
Female
n=3,633
Urban
n=3,160
Rural
n=2,840
Above
poverty line
n=2,239
Below
poverty line
n=3,761
Urban dwellers and individuals above the poverty line are approximately three
times more likely than their counterparts to be active bank account holders
INDONESIA
Active account ownership by key demographic groups
(Shown: Percentage of each subgroup)
2.7x higher
3.5x higher
Active nonbank financial institution account holdersActive bank account holders
32

Most full-service bank account holders have digital access, but prefer non-
digital channels
1%
2%
3%
3%
73%
78%
Door-to-door agent
Bank's website
Over-the-counter at a retail store
Mobile app
Over-the-counter in a branch office
ATM
INDONESIA
Preferred way to access a bank account
(Shown: Percentage of adults who have access to an account
at a full-service bank, n=1,524)
Just 3.3% of those who can access their
bank accounts via mobile phones (n=547)
prefer to use this method for accessing
their account.
7%
93%
Full-service banks offering digital access
(Shown: Percentage of adults who have access to an account
at a full-service bank, n=1,524)
No digital access
Bank they use offers digital access to accounts
33

Bank account holders use accounts for services beyond deposits and
withdrawals
INDONESIA
*Question allowed for multiple responses.
9%
21%
26%
29%
31%
64%
88%
Pay bills
Transfer money between
financial institutions
Save or set aside money
Receive wages from primary
or secondary job
Person-to-person transfers
Deposit money
Withdraw money
Top uses of full-service bank accounts
(Shown: Percentage of adults who have a full-service bank account, n=1,199)
68% have engaged in at least one activity
beyond deposits and withdrawals.
44% have engaged in two or more.
50% of above-poverty-line individuals with
full-service bank accounts have used them
for at least two services beyond deposits
and withdrawals; 22% of those below the
poverty line have done the same.
34

Awareness of mobile money services is limited, driven by mass media and
personal connections
INDONESIA
3%
97%
6%94%
Brand awareness
(Recognize at least one mobile money provider)
Concept awareness
(Recognize concept of mobile money)
Mobile money awareness
(Shown: Percentage of Indonesian adults,
N=6,000)
2%
6%
10%
24%
29%
37%
38%
Other
Go Cash
Mo Cash
Dompetku
E Cash
T-Cash
XL Tunai
10%
19%
21%
31%
SMS alerts from providers
Billboards
Family and/or friends
Television
Mobile-money brand awareness
(Shown: Percentage of Indonesians aware of at least one mobile money
provider, n=309)
Top sources of mobile money brand awareness
(Shown: Percentage of Indonesians aware of at least one mobile money
provider, n=309)
71% of this group is only
aware of one mobile money
provider. 1% has used MM.
Unaware
Aware
Unaware
Aware
35

Individuals aware of mobile money are much more likely to have used
banks than are their counterparts; they’re also more financially active
70%
34%
14%
Use banks Use any NBFS Use account-bearing
NBFS
12%
12%
56%
59%
64%
80%
83%
88%
3%
3%
55%
34%
57%
83%
59%
88%
Loan activities
Insurance activities
Receive wages
Deposit/withdrawal
P2P transfers
Pay bills
Buy airtime
Buy goods/groceries
INDONESIA
Use of financial service streams by MM aware
(Shown: Percentage of Indonesians aware of at least one mobile
money (MM) provider, n=309)
29% of the total population has
used a bank account.
Unaware of a MM
provider
Aware of MM provider
Financial behaviors in the last 90 days of MM aware vs.
MM unaware*
(Shown: Percentage aware of at least one MM provider n=309;
unaware of one MM n=5,691)
36

Arisans are by far the most widely used nonbank financial service
68%
32%
INDONESIA
5%
6%
7%
9%
9%
12%
18%
69%
Money lender
Other
Rural credit bank*
Post office bank*
Money guard
Pawn shop*
Cooperative / Ventura*
Arisan
Use of nonbank financial services by type**
(Shown: Percentage of Indonesian adults to have ever used, n=2,055)
Used NBFS
Never used NBFS
Arisans are an Indonesian form of a Rotating Savings and Credit Association (ROSCA). Arisans, while the most commonly used form of nonbank financial services,
are also one of the least formal types of financial services.
**Question allowed multiple responses.
*Denotes semi-formal/account-bearing nonbank financial services
Use of nonbank financial services (NBFS)
(Shown: Percentage of Indonesian adults, N=6,000)
• On average, people have only ever
used one NBFS.
• 32% use at least one NBFS.
• 8% use two or more NBFS.
• 2% use three or more.
37

Full-service NBFS, active arisan users have the same financial habits as
the general population, making them prime for formal financial inclusion
INDONESIA
Top 5 financial behaviors in the past 90 days by NBFS subgroup
(% of subgroup)
Total
N=6,000
Full-service NBFS
account holders
n=229
Persons to have used an
arisan in the past 90 days
n=1,352
Buy goods/groceries 88% 92% 92%
Pay bills 83% 90% 92%
Buy airtime 60% 65% 57%
P2P transfers 58% 64% 59%
Receive wages 55% 71% 60%
NBFS users are prime for financial inclusion:
• They are engaged in activities that can be facilitated by
financial accounts.
• They already use some form of financial services.
38

15%
A lack of perceived need may be preventing active arisan users from utilizing
formal financial services
4%
4%
14%
20%
26%
There are no banks near my home
I don't like the monthly charges
applied to my account
I don't have money to make any
transactions with such account
I do not have money
I don't need one, I don't make
transactions
INDONESIA
Main reason for not having a bank account
(Shown: Percentage of active arisan users, n=1,013)
Exclusively use
arisans on a
regular basis.
(past 90 days)
*Exclusive use of arisans in the
past 90 days
(Shown: Percentage of Indonesian adults,
N=6,000)
• 60% indicate they “sometimes” or
“always” spend less than they
make each month.
• 43% have indicated their savings
are “sometimes” or “always”
larger than their debts.
Demographics of active arisan users
(Shown: Percentage active users of arisans, n=1,013 )
64%
Female
57%
Have not
advanced beyond
primary education
52%
Rural
68%
Below the
poverty line
75%
Live on Java
*Exclusive use of arisans refers to individuals that do not have bank accounts but have used an arisan in the past 90 days.
64% of the total
population lives on Java.
39

NONUSERS OF FINANCIAL SERVICES
INDONESIA
40

51%
49%
Nonusers of financial services are predominantly under 45 and rural
INDONESIA
51% female
54% rural
74% below the poverty line
51% have not advanced beyond primary education
15-24
25-34
35-44
45-54
55+
30% are between the ages of 15 and 24
19% are 55 years of age or older
Have used any of financial services
Have not used any form of financial services
Nonusers of financial services
(Shown: Percentage of adult Indonesians,
N=6,000)
54% own a mobile phone
41

Nonusers of financial services have similar payment and purchase
behaviors to users
INDONESIA
Most common financial behaviors of nonusers and
users in the past 90 days*
(Shown: Percentage of adults who haven’t used financial services,
n=2,957; users of financial services, n=3,043)
1%
6%
8%
13%
50%
55%
57%
80%
86%
5%
24%
11%
58%
60%
66%
58%
86%
90%
Loan activities
Receive government benefits
Deposits/Withdrawals
Receive wages
Purchase airtime
P2P transfers
Pay bills
Buy goods or groceries
Users of financial services Nonusers of financial services
The gaps for these activities are not surprising given
they usually require using some form of financial
service provider.
Cash is the primary medium through
which nonusers of financial services
engage in financial activities; virtually
every nonuser utilizes cash for their
financial activities. Bartering (2%) and
gold (2%) are the second and third most
common ways to transact.
42

Nonusers aren’t as aware of mobile money
INDONESIA
Mobile money brand awareness
Recognize at least one mobile money provider
(Shown: Percentage of users, nonusers of financial services)
Mobile money concept awareness
Recognize at least one mobile money provider
(Shown: Percentage of users, nonusers of financial services)
Users of financial services
(n=3,043)
(n=2,957)
4%
1%
9%
3%
Users of financial services
(n=3,043)
(n=2,957)
43

There’s greater financial instability for those who do not use financial
products, vs. those who do
INDONESIA
Financial insecurity of nonusers, users of financial services
Indicators of financial insecurity Total Nonusers
(n=2,957)
Users
(n=3,043)
“Rarely” or “never” have savings that are larger
than their debts
66 78 53
Had no money left over last month after paying all
of their typical family/personal expenses or even
had to borrow money to meet these expenses
62 80 43
“Rarely” or “never” have an emergency fund to
cover unplanned expenses
60 71 48
“Rarely” or “never” spend less than they earn each
month
47 55 39
“Rarely” or “never” pay their bills on time 40 50 28
Nonusers are more
financially vulnerable than
their counterparts.
44

SPECIAL TOPICS:
GOVERNMENT BENEFICIARIES
INDONESIA
45

12%
88%
Just over one in 10 receive government benefits; few G2P recipients own
mobile phones, have bank accounts
INDONESIA
52% female
46% own mobile phones
19% own bank accounts
15-24
25-34
35-44
45-54
55+
Do not receive financial support from the government
Receive financial support from the government
Indonesians benefitting from
government programs
(Shown: Percentage of adult Indonesians,
N=6,000)
46

Most G2P beneficiaries are part of cash transfer programs
88%
12%
4%
7%
9%
12%
19%
43%
INDONESIA
Indonesians benefitting from government
programs*
(Shown: Percentage of Indonesian adults, N=6,000)
Government benefits received by program*
(Shown: Percentage of adults receiving government
benefits, n=744)
Question allowed for multiple responses
Fertilizer subsidies
*Depending on the program, either an entire household
or an individual is the beneficiary.
Receive financial support from the government
BLT/BLSM: Bantuan Langsung Tunai/
Bantuan Langsung Sementara Masyarakat
BSM: Bantuan Siswa Miskin
BPJS: Badan Penyenggara Jaminan Soaial
PKH: Program Keluarga Harapan
PNPM: Program Nasional Pemberdayaan Mandiri
BLT/BLSM: conditional and unconditional cash transfers to the poor in response to rising fuel costs
BSM: cash transfers to poor students
BPJS: subsidized health insurance for the poor
PKH: conditional cash transfers to poor households with children or pregnant women
PNPM: program grants to civil society organizations designed to empower individuals
47

Those over 55, rural and below the poverty line are most likely to be
recipients of government benefits; men and women are equally likely
12% 12% 12%
9%
15%
7%
15%
7%
9%
14%
12%
19%
Total
(N=6,000)
Male
(n=2,367)
Female
(n=3,633)
Urban
(n=3,160)
Rural
(n=2,840)
Above
poverty line
(n=2,239)
Below
poverty line
(n=3.761)
15-24
(n=919)
25-34
(n=1,290)
35-44
(n=1,408)
45-54
(n=1,103)
55+
(n=1,280)
INDONESIA
Recipients of government benefits by demographic
(Shown: Percentage of each subgroup, N=6,000)
48

Just over half of G2P beneficiaries have used financial services; this group
is more educated, wealthier than their counterparts
44%
15%
13%
29%
INDONESIA
Used both a bank and NBFI
Only ever used a bank
Never used any form of financial service
Only ever used a NBFS
Male
Female
Above poverty line
Below poverty line
15-24 years old
25-34 years old
35-44 years old
45-54 years old
55+
Literate
>Primary education
Access to mobile
54%
46%
29%
71%
10%
18%
29%
15%
29%
90%
47%
75%
42%
58%
9%
91%
20%
14%
19%
18%
29%
86%
32%
51%
Accessed financial
services
(n=418)
Never accessed
financial services
(n=326)
56%*
Have accessed
financial services
Have ever accessed financial services
(Shown: percentage of recipients of government
payments, n=744)
*Percent to have accessed financial services adds to 57% in pie chart due to rounding.
For G2P recipients, cash is the most common (87%)
means of engaging in financial behaviors.
Bartering/trade (8%) and cashless payments/e-transfers
(2%) are the second and third most common.
G2P Recipients
49

G2P beneficiaries experience more financial insecurity than individuals
who do not receive government support
INDONESIA
50
Financial insecurity of G2P recipients, non-G2P recipients
Indicators of financial insecurity Total Non-G2P
recipients*
G2P
recipients*
“Rarely” or “never” have savings that
66 65 71
Had no money left over last month
after paying all of their typical
family/personal expenses or even had
to borrow money to meet these
expenses
62 61 71
“Rarely” or “never” have an emergency
60 59 66
“Rarely” or “never” spend less than
they earn each month
47 46 55
“Rarely” or “never” pay their bills on
time
40 40 38
(N=6,000)
**All but “pay their bills on time” have been found to be significant using the chi-square test at a 95% confidence level.
(n=744)
• 91% of beneficiaries have experienced
one or more of these forms of financial
insecurity, compared with 87% of the
total population.
• 78% have experienced two or more,
compared with 72% of the total
population.
(n=5,256)

SPECIAL TOPICS:
AGRICULTURAL SECTOR
INDONESIA
51

32%
68%
The agricultural sector is disproportionately male, over 44, and unbanked
INDONESIA
57% male
15-24
25-34
35-44
45-54
55+
Non-agricultural sector
Receive income from the agricultural sector
Indonesians in the agricultural sector)
Agricultural sector includes those who are unemployed but grow or sell items at different points in the agricultural sector’s supply chain.
52

Agricultural workers vs. those outside of this sector are less likely to make
person-to-person transfers or buy airtime
INDONESIA
Most common financial behaviors of Indonesians
in the agricultural sector
(Shown: Percentage of adults receiving income from the agricultural sector,
n=1,942; non-agricultural sector, n=4,058)
2%
13%
16%
26%
44%
48%
68%
84%
86%
4%
8%
14%
40%
68%
62%
49%
83%
89%
Loan activities
Purchase airtime
P2P transfers
Receive wages
Pay bills
Non-agricultural sector Agricultural sector
*Question allowed for multiple responses.
Cash is the dominant mode of transaction for
agricultural sector individuals; nearly all individuals
use cash for financial activities.
Bartering is the second most common at 3% and e-
money or cashless transactions is third at 2%.
53

More than half have never used any financial services; of those that have,
NBFS use is most common
53%
11%
9%
27%
INDONESIA
Used both a bank and NBFS
Male
Female
Above poverty line
Below poverty line
15-24 years old
25-34 years old
35-44 years old
45-54 years old
55+
Literate
>Primary education
Access to mobile
58%
42%
27%
73%
9%
22%
24%
23%
19%
94%
41%
72%
57%
43%
16%
84%
19%
18%
17%
20%
27%
87%
29%
55%
Accessed financial
services
(n=931)
Have never accessed
financial services
(n=1,011)
47%
Have accessed
financial services
(Shown: Percentage of adult Indonesians in the
agricultural sector, n=1,942)
Agricultural Sector
54

Those in agriculture have experienced financial insecurity on par with the
general population
INDONESIA
55
Financial insecurity of agricultural, non-agricultural sector workers
Indicators of financial insecurity Total Non-agricultural
sector*
Agricultural
sector*
“Rarely” or “never” have savings that
66 65 68
Had no money left over last month
after paying all of their typical
family/personal expenses or even had
to borrow money to meet these
expenses
62 60 66
60 60 59
“Rarely” or “never” spend less than
they earn each month
47 47 47
“Rarely” or “never” pay their bills on
time
40 40 38
(N=6,000) (n=2,957)
*All but “spend less than they earn” and “have an emergency fund” have been found to be significant using the chi-square test at a 95% confidence level.
(n=1,942)
• 88% of those in the agricultural sector
have experienced one or more of these
forms of financial insecurity, compared
with 87% of the total population.
population.
(n=4,058)

SPECIAL TOPICS: YOUTH
Defined as 15- to 35-year-olds by ASEAN Youth Forum*
INDONESIA
*http://www.aseanyouthforum.org/about.html
56

48%
52%
Youth are better educated and more aware of mobile money brands than
many other demographic groups
INDONESIA
51% female
8% are aware of at least one mobile money
provider
11% are farmers
17% are full-time students
5% are factory employees
5% are occasional workers
Adults over 35 years of age
Youth (adults aged 15 to 35)
Indonesian youth
4
3
2
1
Top 4 Occupations
57

Half of all Indonesian youth are employed through two jobs; its common to
have supplementary income in addition to their jobs
49%
3%
48%
0.4%
0.4%
0.6%
0.7%
2%
2%
5%
6%
6%
7%
9%
Remittances/other help from a
child/children
Remittances/other help from
siblings/cousins/friends
Occasionally sell my belongings
Other NGO benefits
Government benefits
Savings
Growing or selling agricultural
products
Remittances/other help from
parent(s)
Occasional work
Interest on stocks and shares
Remittances/other help from spouse
INDONESIA
Unemployed
Employed with a second job
Employed with single job
37% of employed
youths have a source
of supplementary
income
Sources of supplementary income*
(Shown: Percentage of employed youth, n=1,113)
Employment rate of Indonesian youth
(Shown: Percentage of youth aged 15 to 35, n=2,399)
• 30% of employed youth have just one
source of supplementary income.
• 7% have two or more.
58

Youth’s financial behaviors resemble that of older adults, except they are
more likely to purchase airtime and less likely to pay bills
INDONESIA
2%
7%
13%
36%
50%
58%
72%
77%
88%
4%
12%
16%
35%
60%
57%
49%
89%
88%
Loan activities
Receive wages
P2P transfers
Purchase airtime
Pay bills
Most common financial behaviors of youth
(Shown: Percentage of adults aged 15 to 35, n=2,399; adults over
35, n=3,601)
Adults over 35 Youth (adults 15 to 35 years old)
• Almost all youth use cash for financial
activities.
• Cashless (e-money) transfers (4%) are the
second most common medium for financial
activities and gold (1%) is third.
59

Close to half of Indonesian youth have accessed financial services; divided
between bank and NBFS
55%
19%
10%
17%
INDONESIA
Used both a bank and NBFS
Male
Female
Above poverty line
Below poverty line
Farmer
Full-time student
Factory employee
Occasional worker
with no occupation
Literate
>Primary education
Access to mobile
Aware of MM provider
47%
53%
43%
57%
12%
11%
7%
3%
98%
76%
91%
13%
51%
49%
26%
74%
11%
21%
3%
7%
97%
67%
80%
4%
Accessed financial
services
(n=1,138)
Have never accessed
financial services
(n=1,261)
45%
have accessed
financial services
(Shown: Percentage of Indonesians aged 15-35, n=2,399)
Percent to have accessed financial services adds to 57% from pie chart due to rounding.
Youth
60

Youth nonusers of financial services are more educated and have higher
mobile money awareness than their over-35 counterparts
INDONESIA
Over 35 nonusers
(n=1,696)
Youth nonusers
(n=1,261)
2%
4%
0.2%
0.9%
MM aware MM brand aware
Mobile money awareness of nonusers of financial services
(Shown: Percentage of youth nonusers vs. over-35 nonusers
aware of mobile money)
29%
71%67%
33%
Primary or no formal education
Have advanced beyond
primary education
Youth
(n=1,261)
Over 35
(n=1,696)
Educational attainment of nonusers of financial services
(Shown: Percentage of youth nonusers vs. over-35 nonusers)
61

Youth experience more financial insecurity than those over 35
INDONESIA
62
Financial insecurity of youth, non-youth
Indicators of financial insecurity* Total Over 35
years of age
Youth
“Rarely” or “never” have savings that are
larger than their debts
66 63 68
Had no money left over last month after
paying all of their typical family/personal
expenses or even had to borrow money
to meet these expenses
62 59 64
60 56 63
“Rarely” or “never” spend less than they
earn each month
47 46 48
“Rarely” or “never” pay their bills on time 40 36 44
(N=6,000)
(n=2,957)
*All but “‘Rarely’ or ‘never’ spend less than they earn each month” have been found to be significant using the Chi-square test at a 95% confidence level.
(n=2,399)
• 89% of youth have experienced one or
more of these forms of financial
insecurity, compared with 87% of the total
population.
population.
(n=3,601)

SPECIAL TOPICS:
REGIONAL DIVIDES
INDONESIA
63

Java is predominantly urban and one of three islands in which more than
one-third of the adult population lives above the poverty line
INDONESIA
Demographics of islands (% of subgroup)
Java
n=3,870
Kalimantan
n=270
Bali & Nusa Tenggara
n=330
Papua
n=90
Sulawesi
n=210
Sumatra
n=1,230
Male 49 51 46 60 45 49
Female 51 49 54 40 55 51
Urban 60 45 47 33 28 38
Rural 40 55 53 67 72 62
Above poverty
line
38 41 23 23 29 36
Below poverty
line
62 59 77 77 71 64
64

Top five financial behaviors are similar across islands but levels of activity
vary; Sulawesi is the most active for person-to-person transfers
INDONESIA
Top 5 financial behaviors in the past 90 days by island (% of subgroup)
Total
N=6,000
Java
n=3,870
Kalimantan
n=270
n=330
Papua
n=90
Sulawesi
n=210
Sumatra
n=1,230
Buy
goods/groceries 88% 87% 98% 98% 76% 100% 87%
Pay bills
83% 85% 73% 88% 98% 91% 76%
Buy airtime
60% 59% 66% 59% 38% 65% 65%
P2P transfers
58% 56% 60% 72% 64% 91% 51%
Receive wages
55% 53% 63% 65% 40% 67% 56%
65

• 85% can access a mobile phone
• 30% have used a bank account
• 12% have used a NBFI*
Use of financial services, access to mobile phones, also vary by island
INDONESIA
Sumatra
Kalimantan
Sulawesi
Java
Papua
*NBFIs refer to rural credit banks (BPR), cooperatives/venturas, pawn shops, and post office banks.
Have used
financial services
Have used
financial services
Have used
financial services
Have used
financial services
Have used
financial services
Have used
financial services
66

METHODOLOGY & RESEARCH
DESCRIPTION
INDONESIA
67

THE INDONESIA FII TRACKER SURVEY - DETAILS
Data collected
• Basic demographics
• Poverty measurement (Grameen
Progress Out of Poverty Index)
• Access/use of mobile devices
• Access/use of mobile money
• Access/use of formal financial
services (e.g., bank accounts)
• Access/use of semi-formal and
informal financial services (e.g.,
arisans (ROSCAs), cooperatives)
• Financial literacy and preparedness
• Technical literacy
INDONESIA
Survey summary
• Annual, nationally representative
survey (N=6,000) of Indonesian
individuals aged 15+
• Face-to-face interviews lasting ,on
average, upwards of 75 minutes
• First survey (year 1) conducted
from 8/3/2014 to 11/12/2014
• Provides baseline measurements;
subsequent annual surveys will
measure trends and track market
developments in DFS
68

Sample Size
The sample size is 6,000 respondents.
Target Population and Sampling Frame
The target population covered by the InterMedia survey included all individuals aged 15 and above living in 24 Indonesian provinces. Ten
provinces were excluded from the survey for logistical and cost reasons. Despite these exclusions, the sampling frame includes 94% of the
Indonesian population. The Indonesian Bureau of Statistics drew the sample based on guidance from InterMedia and contributed input on
sampling procedures at each level of stratification.
Sampling Census Blocks
The first step of the sampling procedure was to distribute the total sample of 6,000 interviews in the 24 provinces in the sampling frame
proportionally to the target population size (15+).
In each province, urban and rural sub-districts were randomly selected using a proportionate-to-population size (PPS) method. In the selected
sub-districts, small administrative units called census blocks were listed, from which primary sampling units (PSUs) were randomly selected
using a PPS method.
Sampling Households and Respondents
Within in each PSU (selected census block) a household listing was conducted with the guidance of the Indonesian Bureau of Statistics. Ten
households were randomly selected from the listing.
One respondent per household was selected using the Kish grid method and relevant consent for eligible respondents under 18 years of age
was obtained.
INDONESIA
SAMPLING METHODOLOGY
69

GLOSSARY OF TERMS
• Access - Access to a bank account or mobile money account means a respondent can use bank/mobile money services either via their own
account or via an account of another person.
• Active account holder – An individual who has a registered DFS account and has used it in the last 90 days.
• Active user – An individual who has used any DFS for any type of transaction in the past 90 days via his/her own account or somebody
else’s account.
• Adults with DFS Access – Adults who either own a DFS account or have access to someone else’s account.
• Arisan – A rotating savings and credit association (similar to a ROSCA). This is an informal structure whose members meet regularly. Each
member contributes the same amount of money when they meet and one member takes the entire pot of money, on a rotating basis.
• Below the Poverty Line - In this particular study, adults living on less than $2.50 per day, as classified by the Grameen PPI.
• Digital financial services (DFS) – Financial services that are provided through an electronic platform (mobile phones, electronic cards, the
internet, etc.). For this particular study, digital financial services include bank services and mobile money services.
• Digital stored-value account (DSVA) – An account in which funds or a monetary value are represented in a digital electronic format and
can be retrieved/transferred by the owner of the account remotely. For this particular study, DSVAs include a bank card (debit or credit) and
a mobile money account.
• Financial inclusion—For the purposes of this study, those with a bank, nonbank financial institution or registered mobile money
account that offer a range of financial services beyond credit are considered financially included.
• Grameen Progress out of Poverty Index (PPI) – A poverty measurement tool from the Grameen Foundation wherein a set of
country-specific questions are used to compute the likelihood that a household is living below the poverty line.
• Mobile money (MM) – A service in which a mobile phone is used to access financial services.
• Registered active user – A person with a registered DFS account that has used it in the last 90 days.
• Urban/rural – Urban and rural persons are defined according to their residence in urban or rural areas as prescribed by the national bureau
of statistics.
70

For more information, contact:
Caldwell Bishop, FII Program Assistant
Bishopc@InterMedia.org
Caroline Mangowal, FII Indonesia Manager
MangowalC@InterMedia.org
Nat Kretchun, FII Asia Lead
KretchunN@InterMedia.org

Indonesia Survey Reveals 23% Financially Included

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Indonesia Survey Reveals 23% Financially Included

Similar a Indonesia Survey Reveals 23% Financially Included (20)

Indonesia Survey Reveals 23% Financially Included