How the Rise of AI in Indonesia is Expanding Financial Inclusion
World Economic Forum | 20th February 2025
Indonesia is at a pivotal moment in its digital transformation. With over 280 million people spread across 17,504 islands and over 180 million smartphones, connectivity has never been higher.
Internet penetration approached 79% in 2024, reflecting the nation’s swift embrace of online platforms. Only a decade ago, nearly half of Indonesia’s adult population remained unbanked. Thanks to rapid advancements in financial technology, the financial inclusion index has climbed to almost 84%. Had AI been as pervasive 10 years ago, this transformation could have been even faster.
Though digital adoption is a global trend, Indonesia’s trajectory is distinct, shaped by supportive government policies, a vibrant fintech sector and a surging digital economy.
Over the past decade, these factors have converged to accelerate financial inclusion – from 49% in 2014 to around 83% in 2023. This remarkable leap is equivalent to adding the population of Switzerland seven times to Indonesia’s banking system.
Moreover, the adoption of digital technologies also correlates with the anticipated growth in gross merchandise value in Indonesia, which is projected to reach approximately $200-360 billion by 2030.
These milestones support Indonesia’s long-term ambition, Indonesia Vision 2045, which envisions an advanced, inclusive and sustainable economy.
Artificial intelligence (AI) – increasingly embedded in financial services to enhance fraud detection, streamline risk assessments and offer personalized customer experiences – is one of the most promising drivers of this progress. By harnessing AI effectively, Indonesia stands to extend essential services to underserved communities, strengthening the foundation of its digital economy.
AIBP Insights
