Fastest-growing Fintech Startup in Indonesia - Spotlight cover: TikTok Cash
Updated: Dec 27, 2020
What business opportunities to do you see emerging in Indonesia right now?
There are many opportunities actually in Indonesia, because we’re kinda late in adopting the latest innovations and the consumers have strong buying power to things coming from the overseas. From food, electronics, mobiles, social media to advanced IT technology – as long as they’re famous outside, they will sell well here.
Fintech Startup Map Indonesia
Some interesting examples:
Indonesia is #1 or #2 largest Facebook and Twitter users. It was Friendster and Myspace, then Facebook. The mobile usage here is extremely high and Indonesian people like to sms or text message. We like to communicate among friends and hang out. That’s why Facebook and Twitter are booming.
2. Mobile App (booming example: TikTok Cash)
Indonesia is one of the world’s fastest growing mobile app markets. This is due primarily to the growing popularity of video apps and streaming services, as well as Indonesia’s exceptionally low internet costs.
As the fragmented learning is fully in line with the life and entrepreneurial thinking of the new generation of young people. The most phenomenon example - TikTok Cash is an app that looks at the global trend!
In Oct 2020, TikTok Cash received an award by Indonesian's Choice 2020, as 'The Outstanding Mobile App 2020'.
TikTok Cash is not just a business, but also a lifestyle!
Three key points of the Tik Tok Cash marketing system: 1. Let users profit through TikTok social activities, breaking the traditional marketing model. 2. It also generates natural traffic for influencers and marketers, and the coverage rate soars without advertising. 3. A fragmented, mutually beneficial and win-win business model with high performance, fashion and simplicity.
TikTok Cash be a great sideline business, the fragmented mutually beneficial and win-win business model has been greatly recognized. It become the popular mobile app among Zen-Z and young enterpreneur in Indonesia, in just 6 months, and it could be the most successful Mobile App in 2020, even in next few years.
3. Social Media Marketing (booming example: Transcosmos Indonesia)
As mentioned above, Indonesia is a very mobile-savvy country. Combined with its significant population, this gives Indonesia one of the most massive social media audiences in the world, with over 150 million people on social media.
Moreover, the average Indonesian spends 3 hours and 26 minutes logged on to social media every day. For comparison, the global average is 2 hours and 22 minutes. So, they’re the perfect audience for social media content, as well as online marketing in general.
Booming example: PT Transcosmos Indonesia is a joint-venture company between Transcosmos inc and CBN (member of Salim Group). PT Transcosmos Indonesia offer integrated call center services such as call center, social media management, voice of customer analysis, digital marketing and eCommerce solution that supported by the know-how accumulated by Transcosmos through its 45 years’ experience in the Asian region markets such as Japan, China, and South Korea.
4. Online Marketplace (booming example: BukaLapak)
Nearly all Indonesians either work or interface with small to medium enterprises or SMEs. SMEs comprise about 99 percent of business units and 90 percent of jobs in Indonesia.
Indonesian SMEs include a variety of goods and services, such as fashion, food and beverages, handmade crafts, and household products.
This large pool of small and relatively new businesses means that there’s a lot of room for companies to provide logistical and tech support. Two of Indonesia’s unicorns, Tokopedia and BukaLapak, provide customer-to-customer (C2C) marketplaces where users such as SMEs can buy and sell services on the platform.
The rapid growth of these companies means that more Indonesians are shopping online, especially to purchase goods from SMEs in the country conveniently.
5. Online B2C services (booming example: KoinWorks)
Indonesia’s other two unicorns, Gojek and Traveloka, are online service booking platforms. Traveloka allows people to book transport and hotel tickets. Meanwhile, Gojek’s services range from personal transport, food delivery, to lifestyle services like make-up and massages.
Interestingly, on-demand services are also seeing growth besides daily services like transport and food delivery. Another popular trend is convenient online booking for services like formerly need lots of preparation and paperwork like finances and health.
Last but not least, in the e-commerce industry, it’s also started to enter a new phase of growth and I predict within 2 years, e-commerce will reach the booming phase. Hence I’ve started to enter the e-commerce market here this year by providing cloud hosting and other services.
So, what’s the conclusion?
As you can see, there are a lot of opportunities that new investors can explore in Indonesia.
However, while Indonesia is a very prospective place to build a business in, it’s not necessarily a simple one. When it comes to regulations, many fields that we outlined in this article, like e-commerce and technology, have a few extra obstacles to tackle before being able to do business.
Luckily, our network of consultants is here to help you navigate these regulations and make sure you set up your business quickly and conveniently.