February 21, 2024

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Tech empowers Indonesian migrant workers

Migrant workers face many challenges in sending money from abroad. Starting from the language barrier when they want to use the country’s banking services, up to 77% of migrant workers have bank accounts but do not use them. Besides, many of these migrant workers are not used to using financial technology to manage their money.

Now, a startup engaged in financial technology (fintech) in Indonesia facilitates migrant workers and their families to manage and send money. The tech start-up said the problems faced by Indonesian migrant workers in managing and sending their money home are real.

Many of these workers are family breadwinners with both elderly parents as dependents and, children who live in homes, most of whom do not have bank accounts.

Moreover, migrant workers are often used by multiple intermediaries regarding remittances or third-party relatives which generally expose them to high risks or must pay high cash handling fees. All the existing limitations limit them from complete control of their income and the difficulty of making direct transactions for various necessities of life in their hometown.

Therefore, the tech start-up developed an app, intending to be the leading IDR electronic money service serving Indonesian people abroad, especially the migrant worker community. The tech developers aim to give migrant workers the flexibility to take full control of the money they earn, with a more transparent approach.

With the platform, migrant workers can deposit their salaries through official outlets in the countries they work for to top-up balances. Users also have access to funds in electronic money and can make various cross-border transactions without cash to send money to their families in their home country, and make daily payments such as buying credit, paying monthly bills, and buying various necessities. Withdrawing cash from the platform will only cost IDR 2,500 (around US$ 0.5), which is up to 10 times cheaper than similar services. Meanwhile, users can make transfers to fellow users for free.

Since its launch in June 2020, the digital money platform has received a total gross transaction value (GTV) volume of IDR 90 billion from 45,000 users. The platform has also acquired 37,261 agents throughout Indonesia, Taiwan, Singapore, and Hong Kong. Through the app, migrant workers can now plan their finances digitally, in real-time, and flexibly with better security and efficiency, anytime and anywhere.

Accordingly, reports say that Fintech is expected to become a major driver of financial inclusion in Indonesia. The country is preparing itself to embrace future disruptions with the government’s 2020 Go Digital Vision to boost overall growth, improve workers’ skills, and create jobs.

Fintech is at the core of plans to meet the target of 75% of Indonesians gaining access to a formal bank account by 2019 set out in the National Strategy for Financial Inclusion. Being less homogeneous than banks, fintech companies can create a more diverse, secure, and stable financial services landscape.

Also, unburdened by legacy systems, fintech companies have greater scope to reduce costs and improve service quality. For example, by leveraging big data, machine learning and alternative data, fintech firms can develop innovative risk assessment models to generate credit scores for customers with limited credit histories. Shaping a stable and cost-efficient ecosystem for fintech in Indonesia is a significant but manageable challenge. Fintech offers a veritable gold mine of insights and applications that can transform governance, and support Indonesia’s efforts in planning for a future with smart solutions

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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