JAKARTA (TheInsiderStories) - PT Bumi Cakrawala Perkasa (BCP), the parent PT Visionet International, the parent of OVO, and Chinese ZA Tech form an insurance technology (insurtech) to accelerate the digitization of the insurance industry and increase financial inclusion in Indonesia.
Jason Thompson, President Director of BCP, said that the establishment of this new joint venture firm was because the insurance penetration in Indonesia was still very low at 1.7 percent of the more than 265 million of Indonesians. Seeing this potential, the partnership between both parties is expected to be a catalyst for the Indonesian insurtech market.
Bill Song, CEO of ZA Tech, added, “We believe that the synergy with BCP will enable us to grow together with local insurance companies and support the acceleration of digital transformation for the insurance industry in Indonesia.”
ZA Tech was a joint venture between Japan’ SoftBank Vision Fund 1 and ZA International which serves as the ZhongAn Online platform for the international business. While, BCP through OVO has a presence in 115 million devices, and PT Indonusa Bara Sejahtera operated P2P Taralite lending provider.
Based on the 2019 payment system market share data released by Bank Indonesia, OVO led the electronic money market share last year by 20 percent, followed by PT Bank Mandiri Tbk (IDX: BMRI) and GoPay with 19 percent, each.
In fourth and fifth positions are DANA and PT Bank Central Asia Tbk (IDX: BBCA) with a share of 10 percent, respectively. While, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) narrowed its market share by 6.3 percent and LinkAja by 5.8 percent. Other players, Shopee 3.7 percent, PT Bank Negara Indonesia Tbk (IDX: BBNI) 1.3 percent, and Doku 1.2 percent.
Although financial technology firm dominates the electronic money market share, banks still dominate the total market share of the financing system. This is because the authorities enter the credit and debit card market shares which are only handled by banks.
At present, OVO has been accepted at around 500,000 merchants. While Go-Pay mentions the number of 300,000 merchants. LinkAja has also recently provided 130,000 merchants and FUNDS can be accepted at more than 13,000 merchants.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
