Indonesia Turns to Digital Finance to Reach Unbanked Population

Why It Matters

Bringing billions of Indonesians into the formal financial system expands credit access and fuels economic growth, while showcasing Southeast Asia’s shift toward fintech‑driven inclusion.

Key Takeaways

• Indonesia targets unbanked via digital finance initiatives
• BRI partners with Ant and FWD to expand services
• Financial Services Authority sets three inclusion policy priorities
• BRI Life becomes Indonesia’s top bancassurance provider

Pulse Analysis

Indonesia’s unbanked challenge is stark: over 50 million adults lack basic banking services, limiting their ability to save, borrow, or transact securely. The Financial Services Authority’s three‑point agenda—strengthening sector resilience, building a contributive ecosystem, and deepening sustainable finance—creates a regulatory scaffold that encourages fintech innovation while safeguarding systemic risk. By prioritising digital channels, the government aims to lower entry barriers, reduce reliance on cash, and integrate remote communities into the formal economy.

At the forefront of this transformation is PT Bank Rakyat Indonesia (BRI), the nation’s oldest and largest lender. BRI’s strategic alliances with Ant International and FWD Group illustrate a multi‑layered approach: Ant brings a proven digital‑footprint model from China, while FWD injects insurance expertise and capital through its 44% stake in BRI Life. The partnership has propelled BRI Life to become Indonesia’s third‑largest life insurer and the leading bancassurance provider, demonstrating how fintech and insurtech can jointly accelerate financial inclusion for micro, small and medium‑sized enterprises.

Regionally, Indonesia’s digital finance push signals a broader Southeast Asian trend where traditional banks collaborate with tech giants to capture underserved markets. As SMEs increasingly adopt online lending and payment solutions, the demand for integrated financial products—combining credit, payments, and insurance—will surge. Successful implementation could unlock new revenue streams, stimulate domestic consumption, and position Indonesia as a fintech hub, prompting neighboring economies to emulate its policy framework and partnership model.

Indonesia turns to digital finance to reach unbanked population

With millions still lacking access to banking services, Indonesia is drawing on regional lessons and forging international partnerships

Authors: Ralph Jennings, Kandy Wong

Published: 8:44 pm, 10 Feb 2026

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Image caption: A teller prepares rupiah bank notes at a money changer in Jakarta, Indonesia, on 9 April 2025. The Southeast Asian nation has one of the world’s largest populations without access to banking services. (Photo: Reuters)

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Indonesia, home to one of the world’s largest unbanked and under‑banked 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:

1. Strengthening the resilience of the financial services sector

2. Developing a contributive financial services ecosystem

3. 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 percent 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 percent 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.

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About the authors

Ralph Jennings – Senior Reporter on the Political Economy desk since August 2022; former freelancer and journalist for Thomson Reuters in Taipei and local newspapers in California. He holds a bachelor’s degree in mass communication from the University of California, Berkeley.

Kandy Wong – Correspondent on the Political Economy desk since 2022; previously reported for the Business desk. She focuses on China’s trade relationships with the United States, the EU and Australia, as well as the Belt & Road Initiative and currency issues. She earned a master’s degree in journalism from New York University.