In the past decade, the insurance industry in Indonesia has been growing from IDR 125 trillion in 2010 up to nearly IDR 500 trillion this year. Despite this growth, penetration in population is still very small. In terms of economic contribution,, insurance spending only account for 2.3% of GDP while the number of private insurance policy holders also less than 3% of the population. In 2014, national health insurance (BPJS Kesehatan) was established by SBY Administration. Current coverage for this is estimated around 75% of population or ~180 million people. With the rate of growth and low penetration of private policy holders, Insurance market in Indonesia is a massive untapped opportunities.
Current market value are still majority contributed from Life Insurance. Based on Insurance Association data, more than 80% of gross written premium are from Life Insurance product such as Term-life, Whole-life and Investment Bundled Product (Unitlink). Unit Link is the most sold product of all life insurance, with contribution of more than half of premium sold in 2014. For general insurance, market size are driven by car and motorcycle insurance.
In terms of distribution and sales channel, majority of insurance sales are still driven by agents and banc assurance. Agent solve the needs of consultation and product knowledge due to the complexity of insurance products. While for banc assurance, insurance companies are helped by bank agents and customer services to advocate their product to banks existing customer base.
Recent surge in insurtech makes many people buy insurance online. However they mostly buy simple, one-time product such as flight, delivery or gadget insurance which have simple straightforward policy. Price is usually very cheap as well. Online channel drive high-frequency, low-value transactions. Hence in terms of total market gross premium value, it will still likely contributed by life-insurance sold by agents.
Insurance principal can be divided into two big categories : Life insurance and general insurance. Both have distinct market dynamics. Life insurance are quite concentrated with Prudential as clear market leader. Most of the big players in Life Insurance also foreign entities such as Allianz and Manulife. General insurance on the other hand is quite fragmented with Sinarmas, Jasindo and Astra closely competing to be top 3. Sinarmas and Astra premiums are driven by auto and property insurance while Jasindo and other state-owned insurance (Tugu, Askrindo) are contributed by industry insurance supporting other SOE (e.g Marine, Oil & Gas insurance).
With low market penetration and sales mainly driven by offline channel, Insurance market are just prone to be disrupted by digital players. From big insurance principal who goes digital up to rising startup who try to break through using innovative products.
In the past years, there is a rising trends of startups and companies which aim to digitize traditional retail merchants a.k.a Warung.Kudo pioneered this back in 2014. They then acquired by Grab in 2017, and recently rebranded into GrabKios. Next is E-commerce unicorn Bukalapak who dove in in this space big time by launching Mitra Bukalapak in 2017. Mitra Bukalapak is estimated to have 3 millions registered user which makes them market leader in digital warung. Tokopedia followed on by launching Mitra Tokopedia in 2018. There are also smaller players such as East Venture backed, Warung Pintar, KiosOn and Payfazz.
This warung trend apparently not only happening in Indonesia. Amazon last week just announced their move to partner with thousands of kirana store, Indian version of warung, to be used as delivery hub. Jeff Bezos himself came down to India to launch this. There is also Mastercard which enabling multiple initiatives to digitize mom-pop store in Latin America.
In this article, i dive into the reason why the trend is happening and which direction will warung digital going to go in the near future. Lets go!.
Sudah bulan Desember. Suasana di kantor juga sudah bau liburan. Memanfaatkan kelowongan, aku akan merekap musik dan podcast menarik yang kutemukan tahun ini.
Berikut rilisan lokal tahun 2019 dari berbagai genre yang berputar terus di playlistku. Dengan kualitas seperti ini, aku berharap semakin banyak yang tahu bagaimana bagusnya musik Indonesia dari tahun ke tahun. Lets go!
List lengkap musik lokal Indonesia yang aku rekomendasikan bisa didengarkan di playlistberikut.
Assalamualaikum nyonya-nyoya tuan-tuan / Heres come the doom, lari cari bala bantuan.
Dalam dua baris, Upi a.k.a Tuan 13 membantai semua battle rapper sepanjang tahun 2019. Lagu ini adalah suntikan adrenalin instan yang kubutuhkan ketika akan masuk ruang meeting dan mendeliver presentasi penting.
Side-project Rekti The SIGIT yang masih senafas rock and roll tapi dengan sentuhan etnik psychedelic. Menenggala adalah single dari rilisan kedua mereka OM atau Orkes Melayu. Benar, track dari rilisan ini mengandung unsur dangdut. Dangdut + Psychedelic Rock + Acid = berjoget kosmis.
Gila sih, mendengar lagu ini reaksi pertamaku adalah kenapa Lamb Of God tiba tiba bervokal mas-mas dengan suara sengau. Setelah kuriset lebih lanjut, ternyata yang nyanyi bukan mas mas tapi bli-bli. Jangar, fourtet unit rock progressive dari Bali, liar beraroma bensin dan alkohol. Gas!
Empat pemuda Jatinangor yang ketika bersatu berubah menjadi titisan spiritual Dick Dale dan membawa ombak revivalist rock selancar California selatan tahun 50an. Terkenal dengan live show yang rusuh, Panturas adalah band lokal teratas dalam wishlist harus ditonton 2020.
Isyana dan Raisa, bertarung sengit di tempat satu dan dua top of mind solis wanita di Indonesia. Tahun 2019, Isyana membuka tabir pop dan merilis jati diri dia sebenarnya: album Lexicon. Sikap Duniawi adalah single pertamanya, dengarkan dan lihat bagaimana Isyana Saraswati menempatkan dirinya di level yang berbeda dari semua musisi Indonesia lainnya.
Mari kita tunggu karir Isyana berikutnya di panggung Broadway atau East End, melagukan musikal musikal Disney serta berduet repertoir klasik dengan Sarah Brightman. Aku sendiri menunggu Isyana untuk muncul di panggung Hammersonic, menjadi feature di setnya Deadsquad mungkin. Ala-ala Within Temptation gitu lah mungkin.
Secara garis besar, aku jauh lebih banyak mendengarkan podcast dibandingkan musik di 2019. Beberapa orang sepertinya mengalami hal yang sama. William Tanu Tokopedia, di panggung konferensi TechinAsia, bercerita sudah jarang sekali membaca buku karena beralih ke podcast. Stand up komedian Gilang Bhaskara juga bicara di BiarLega tentang kebiasannya di busway yang bergeser dari mendengar musik menjadi podcast.
Selain itu, skena podcast lokal meledak di tahun 2019 sehingga podcaster lokal menggeser rotasi podcast barat seperti Freakonomics atau How I Built This yang tahun lalu banyak ku dengarkan.
Berikut 3 podcast lokal yang aku rekomendasikan beserta spesifik episode yang menurutku paling bagus.
Podcast Boker – Episode Rhoma Irama
Podcast Boker a.k.a BKR Brothers a.k.a Ryo, Molen dan Bobby. Hands down, podcast paling maksimal dari sisi kengehean. Membahas hal hal terkait pergaulan Jakarta Selatan dengan eksplisit, jujur dan (for the lack of better word) ngehe!. Podcast yang selama tahun 2019, rutin menemani dan membuatku ngakak sepanjang perjalanan kerja dari Cibinong ke Ampera.
Di medio tahun 2000an awal, ketika masih SMA di Surabaya, jadwal rutinku setelah magrib adalah mendengarkan radio. Di EBS FM klo tidak salah, jam 7 sampai jam 9 ada acara yang dipegang oleh DJ bernama Yohanes dan Micky. Sepanjang acara, mereka berdua bercanda jorok, membahas hal-hal seru tentang Surabaya dan ngobrol ngalor-ngidul. Podcast Boker mengingatkan aku tentang acara ini dan bagaimana penyiar radio yang bagus, bisa membuat aku merasa ikut nongkrong dan tertawa bareng mereka.
Episode yang pas untuk memulai mendengar podcast ini adalah ketika BKR Brothers menginterview Kiki Aulia Ucup, manager Barasuara, tentang pengalamannya mengundang Rhoma Irama untuk Synchronize Fest dan segala keabsurdan dibelakangnya.
Podcast Stand Up Indo – Episode Pandji Pragiwaksono
Stand-up komedi adalah satu kesenian yang tidak aku sangka bisa bertumbuh besar di Indonesia. Aku menemukan Seinfeld, Pryor dan Carlin ketika kuliah dan selama di Surabaya, tidak pernah aku bertemu se-orang pun yang mengenal, let alone suka, dengan gaya berkomedi tunggal seperti ini.
Di tahun 2011, stand-up komedi Indonesia bertumbuh pesat dan salah satu kontributor penting adalah komunitas StandupIndo. Podcast StandupIndo membahas segala macam hal di belakang panggung stand-up komedi. Mulai profil para komika sebelum jadi komika, profil komunitas dan juga pembahasan sisi bisnis dari stand-up komedi itu sendiri.
Satu yang aku suka dari podcast ini adalah cerita cerita bagaimana kesenian ini mengubah hidup banyak komika. Seriusan, aku seringkali terinspirasi mendengar podcast ini daripada Merry Riana. Yang menginspirasi juga adalah, the length some comics take to get their materials. Di satu episode, Rahmet Ababil ikut tawuran hanya untuk cari premis dan menguatkan personanya sebagai komika SMK.
Episode favoritku adalah Pandji Pragiwaksono. Di tahun 2011, Pandji membuat special show stand-up pertama di Indonesia dan aku beruntung ada di dalam Usmar Ismail hall pada event itu. Belum ada komika yang seprolifik Pandji: spesial paling banyak, punya acara standup-rutin setiap minggu dan yang pertama tur di luar negeri. Di episode ini, kita bisa mendengar beberapa strategy yang dilakukan Pandji untuk menjadi top of mind komika.
Seperti mendengarkan HBR Ideacast, banyak hal tentang marketing, branding dan strategy yang aku dapat di episode ini.
Amwave – Episode JRX, Twice Bar dan SID
Amwave membahas berbagai macam aspek skena musik lokal. Serupa dengan podcast indo tetapi untuk konteks yang berbeda. Dengan durasi minimum satu jam, Amwave secara in-depth membahas pelaku, event, brand clothing dan tentu saja, band dan musik yang berpengaruh terhadap musik sidestream di Indonesia.
Episode favorit adalah ketika Bobby (dari podcast Boker) menginterview pundit punk Bali paling kontroversial JRX a.k.a Ari Astina dari Superman Is Dead. Dimulai dari membahas pernikahan JRX, sejarah terbentuknya SID dan bagaimana ups and downs order manggung SID di tahun 2019.
Bias, karena aku bertumbuh besar SMP dan SMA dengan lagu SID. Tapi untuk setiap penikmat musik, Amwave merupakan angin segar untuk yang ingin mengkonsumsi konten seputar musika nusantara semenjak majalah Hai dan Rollingstone kolaps.
This month marks my 2 years tenure in Amartha. After almost decade of experience in telco industry and straight outta Manchester Business School Innovation studies, in late September 2017 i jumped headfirst into fintech startup world. It was challenging and exciting ride with constant learning every single day of the week.
One of my key learning from leading Amartha’s Business Development team is how to design loan product. Amartha core business is micro-loan for rural women and as bizdev, my task is to explore new loan product opportunities. In this post, i will brain dump my learning in developing loan product for micro-business segment.
Quick recap on attending what probably the biggest tech and startup conference in South East Asia. I only attend day 2 hence this might be short. Hopefully still useful.
Xendit on Running Experimentation and Hiring Practices
Moses Lo and Tessa Wijaya from Xendit shares their experience scaling startup beyond series A. Xendit itself is a payment gateway, enabling apps or website to do everything related to payments.
First interesting insight from them is their dead simple guidelines on running experimentation : 3 months, 7% growth per week. Any experimental product which consistently passing those bar will get invested more. Below the bar, project will be scraped. Nothing happened to the team, they will be assigned for something else. Any point of time, Xendit will have 3 or 4 “business as usual + 1” experiments , new product which adjacent to their current offering.
This is a good innovation practice by nurturing exploration while still budget conscious. Moses learned this from his time in Y Combinator.
Second one is their hiring practice to do trial day. Candidates applying for Xendit will have to spend one day to work with the team as part of their hiring assessment. By doing this both the team and candidates can sense whether they can fit together or not. Since interview is a bad predictor of performance, Trial Day help Xendit avoids bad hiring by test the candidates on real working condition.
OVO on Solving Problems Using Fintech
On main stage, Jason Thompson from OVO delivered quo vadis speech on where the fintech is going. It was the best presentation ive seen on Day 2. Jason gave insightful and humble presentation on OVO’s journey so far.
Three key points from Jason’s speech.
First, OVO achieved 10x growth due to strategic partnership with Grab and Tokopedia. Grab Bike & Grab Car contribute high frequency of transactions while Tokopedia drives the value of the transactions. On top of that, OVO itself boost ubiquity and reason to use by having presence in almost every shopping mall in Indonesia.
Second, answering on the skepticism on cash-back, the growth of OVO has been healthy. This is due to the growth in both users and value, is followed by growth in stored value fund. Seems like users are more comfortable to left their money in OVO balance.
Third, OVO aimed to expand beyond wallet into other financial services. Investment will be their first expansion, powered by Bareksa acquisition. Jason spent quite a time emphasizing how big investment opportunities in Indonesia while investment in adoption is still very low compared to the region.
Lending and insurance will be next. OVO transaction data will be leveraged to make their financial services attractive for each users ( e.g credit scoring for cheaper lending and insurance).
And yes, Jason also confirm OVO status as the fifth unicorn in the country.
Tokopedia on Their Next 10 Years
William Tanuwijaya interview was probably the most sought-out session in Day 2 of the conference. Main stage area was jam-packed with people, i could barely saw the stage.
Guided by Willis Wee of Techinasia himself, William talk about a decade of Tokopedia journey, key decisions thats important for growth of Tokped and also his personal growth as a founder CEO.
Three important takeaways for me.
First, asked about early decisions that has been pivotal for Tokped foundation, Willliam answer was the decision to not blindly copy global ecommerce promotion day (e.g 11.11 in China, Black Friday). Relying on big-bang promotion day to boost sales is not only unsustainable, but also many of these promotion day is out of context for Indonesian hence it doesnt bring good result. Tokopedia choose to pick promotion day on the last week before lebaran. Smart move considering most office workers already got their THR bonuses during this time. This is also a subtle jab for Bukalapak which make promotion day every single month (1.1, 2.2 and so on).
Second is about their Super Ecosystem strategy. Tokped is exploring many new things such as financial services, selling tickets and bill payment. However, William emphasized that Tokopedia will prefer collaborate with aligned partners rather than building their own. Different path from what Amazon is going where they start to develop many in-house verticals. Hence Tokped platform will be geared to be more open and William invites startups and other institutions to develop the ecosystem together.
Last and the most interesting one is his vision on Tokped next 10 years. Tokopedia next decade vision is to enable smalll business owners in rural Indonesia to have the same capabilities as national (or international) retailer. William cited that he wants store owner in Aceh can possibly make their business big without having to move to Jakarta to get better access to market. This could contribute into decentralization of economy of Indonesia and also reverse urbanization.
To realize this vision, Tokopedia will make most of their e-commerce capabilities as a services for this small business. For example, if a seller need logistic or warehousing capabilities to do overnight delivery, Tokopedia could provide it. This also goes for marketing, payment and other capabilities.
In their last impact report, Tokopedia claimed to contribute 1% of Indonesian economy. William aim to push this into 5% in the next decade.
LinkAja has officially grand-launched last June. It represents collective efforts of Indonesian BUMN (state-owned enterprise) to gain market share in emerging digital payment space. Clashing with the likes of Gojek, Grab-backed OVO and Alibaba-backed DANA.
Things are not starting smoothly for them. The grand launch has been delayed couple of times due to technical issues, experts doubts their agility to compete and they’ve slouched to 4th place below DANA. Even though a year ago, T-Cash was fighting head to head with OVO to gain 2nd place.
So whats the move going forward ? Heres my quick thoughts on how LinkAja can win
Gopay, Ovo and DANA all require smartphone to use. On the other hand, telco-based wallet such as T-Cash can be operated from dumb phones using USSD command. LinkAja can leverage this to offer more inclusive experience.
To process payments, user can just provide their mobile phone and approve payment via sms-delivered OTP. This could be beneficial to push LinkAja usage in rural areas where mobile internet coverage is spotty.
Digitizing Government Payments
In my experience, government payments are mostly in cash. From paying traffic fines, renewing your driver license or paying annual vehicle tax, LinkAja could be leveraged to make all of this cashless. Toll-road, Commuter Line and TransJakarta has been successfully converted to 100 percent cashless hence its not impossible to expand this into any sort of government payments.
For government institutions, cashless payments could make their payment processing more efficient and reduce fraud as well. This could be incentives for policy makers or public institution leaders to push LinkAja adoption in their organization. LinkAja could capitalize this putting registration and cash-in booth on every government institution that accept cash payment.
Leveraging Combined User Base
LinkAja is an evolution T-Cash. Telkomsel has 100 million existing user base. There also four state banks backing LinkAja up : Bank Mandiri, BNI, BRI and BTN. The four combined (also known as HIMBARA) represented almost 200 million accounts. Not to mention user contribution from Pertamina and Jiwasraya.
As i mentioned in my previous article, massive user base dont mean much if there are no clear benefits for Telkomsel or HIMBARA to use LinkAja over other wallet provider.
Good example of this is initiative to link integrate current account to LinkAja balance. Hence if you are one of HIMBARA bank users, you dont have to constantly top up, just link your account and LinkAja app could substitute your card as payment method.
Another ideas might be to use LinkAja as easier method to do peer to peer transfer. User can transfer money from any of HIMBARA bank to any mobile phone number since primary identifier for LinkAja (0r any other wallet) is mobile number.
Loyalty points is another angle that state owned enterprise could collaborate with LinkAja. Points from Telkomsel top-up, Pertamina petrol station, any payments from HIMBARA banks will be consolidated in LinkAja.
The key is to make the experience using LinkAja much much better for existing BUMN customer base compared to non-user. If its not, then LinkAja would not have advantage over other big 3 wallet provider no matter how many state enterprises backing them up.
In current Indonesian context, when somebody talk about fintech they mostly refer to lending. In DailySocial surveys, more than half of respondent associated fintech with online lending services with payment as a close second. Number of fintech funding activities also skewed toward this direction with 60% of total 14 deals in 2018 went to P2P lending startups. If you browse through fintech list in OJK website, only P2P lending are listed even though insurance and investment fintech falls under OJK supervision. There are currently 113 registered lending fintech as of June, far more than any other types of fintech combined.
Two things from this: Indonesian fintech growth so far still contributed by lending thus other financial services is underutilized. This leaves lots of room to grow for fintech ecosystem going forward. Second, with lending companies already reach hundreds, fintech players need to think hard what will be the next play.
So what could be the next phase for Indonesian fintech ? my take is on investing. Of all the financial services, it is the least inclusive with less than 1% registered investors in a 270 million population. Number of investors has been growing double digits for four years straight and most of the growth are contributed from younger segments.
In this article, i wrote overview on investing landscape in Indonesia, challenges and how this sector has big potential to drive further fintech growth going forward.