Is Indonesia’s Financial Technology Sector Entering a New Phase? 

Indonesia’s Fintech sector has emerged as a key driver of the country’s digital economy, driven by rapid digital adoption, increasing financial inclusion, and growing demand for accessible financial services. The rapid expansion of digital lending, payments, neo banking, and other technology-driven financial services continues to reshape Indonesia’s financial landscape and attract investor interest across the sector. 

Within fintech lending, the market is showing signs of maturation. Outstanding loans increased from IDR 29.88 trillion in 2021 to IDR 96.62 trillion in 2025, while the number of licensed players declined from 103 to 95 companies. This suggests that growth is increasingly concentrated among fewer, stronger, and more compliant platforms, reflecting industry consolidation and tighter OJK supervision rather than weakening market demand. 

The broader digital economy also continues to expand, with GMV rising from IDR 1,103 trillion in 2021 to IDR 1,733 trillion in 2025. This growth has been supported by wider digital payment adoption, including BI-FAST’s lower-cost real-time transfers and the rapid expansion of QRIS merchants from 14 million to 43 million, particularly among MSMEs. 

As adoption becomes more widespread, Indonesia’s fintech sector is entering a more mature phase. Future growth will depend not only on user acquisition and transaction volume, but also on profitability, stable funding access, regulatory readiness, and operational resilience. This shift is expected to further support strategic partnerships, IPO preparation, and M&A activity across the sector. 

Why is BPR or BPD Acquisition Becoming Strategically Important? 

BPRs and BPDs are becoming increasingly relevant within Indonesia’s fintech landscape as they provide capabilities that many fintech companies still lack, including access to customer deposits (Current Account Savings Account or “CASA”), regulated banking licenses, and more stable funding infrastructure. As digital lending expands, access to lower-cost funding has become increasingly important to support lending margins, profitability, and long-term growth, particularly amid elevated borrowing costs. 

Conversely, fintech companies may offer BPRs and BPDs enhanced digital capabilities, product innovation, operational efficiency, and broader customer reach beyond traditional regional limitations. This development also aligns with OJK’s Roadmap Pengembangan dan Penguatan Industri BPR dan BPRS 2024-2027 framework, which emphasizes BPR/BPRS digitalization, strengthening competitiveness, and broader regional economic participation. 

In this context, while acquisition activity has moderated since its 2021 peak, recent transactions continue to reflect strategic interest in banking access and funding stability. Indonesia’s relatively resilient economic growth and moderating inflation may also continue to support long-term fintech sector expansion. 

Valuation Outlook 

Indonesia’s fintech lending ecosystem generally operates through a digital marketplace model that connects fund providers with borrowers through an integrated lending platform. The diagram below outlines this end-to-end operational workflow. 

Beyond facilitating lending activities, the operating model also shapes a fintech company's revenue generation, risk profile, and growth prospects. These factors serve as key inputs in the valuation of fintech businesses. 

The table below summarizes the common valuation methodologies across fintech companies, BPRs, and BPDs. 

Despite operating in the same ecosystem, valuation approaches differ significantly. Fintech companies are valued on their ability to convert transaction growth, customer acquisition, user engagement, and platform scalability into sustainable revenue generation and future cash flows. Conversely, banking-related transactions (BPRs/BPDs) are closely linked to banking fundamentals, including balance sheet strength, Net Interest Margin (“NIM”), asset quality, capital adequacy, and dividend capacity. 

These differences indicate that similar financial performance may still lead to different valuation outcomes depending on risk level, capital structure, earnings stability, and recurring return potential. 

Conclusion 

Indonesia’s fintech sector is expected to evolve toward a more regulated and sustainability-driven ecosystem, with greater focus on funding stability, credit quality, and long-term profitability. This may continue to drive strategic partnerships and M&A activity involving fintech companies and BPR or BPD institutions, strengthening integration between digital platforms and regulated banking infrastructure. If professional assistance is required, RSM can support companies through business valuation, transaction advisory, and other corporate finance related services.

 

Contributor: Syahadam Manaf, Consulting Practice

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