Indonesian Market: perspectives for investors
1/1/2025
Indonesia is one of the most promising and rapidly developing economies in the world, offering unique opportunities for capital growth and profitable investments. r2p Invest Singapore considers this market strategically important for long-term investments, particularly in the acquisition of non-performing loans (NPLs).
The financial sector in Indonesia demonstrates stable growth. As of November 2024, credit to households reached €213 billion, marking a 10.41% increase year-over-year. By November 2024, total household debt stood at €137.3 billion, while the total volume of NPLs in April 2024 amounted to €10.7 billion. The annual growth rate of household sector NPLs is 1.50%, highlighting the need for effective debt management solutions.
One of Indonesia’s key advantages is its young and active population. The country ranks fourth globally in terms of its young workforce, with over 50% of the population under the age of 29.5. This demographic structure fuels economic expansion and increases demand for financial services. Additionally, the rapid growth of the middle class, which is projected to reach 100 million people by 2029, further strengthens consumer spending and financial activity.
Indonesia also leads Southeast Asia in digital economy development. In 2022, this sector contributed €70 billion to the economy, with forecasts predicting it will exceed €120 billion in the coming years. The financial sector is particularly dynamic, with 106 commercial banks and 334 fintech companies, accounting for 25% of the Asian fintech market, experiencing an annual growth rate of 10.5%.
For investors, Indonesia presents several key advantages. The country’s nominal GDP in 2024 is €1.38 trillion, making it the 16th largest economy globally. According to Goldman Sachs, Indonesia is expected to enter the top 15 economies by 2030 and be among the top five by 2050. Government initiatives are actively working to improve financial accessibility, expanding credit opportunities for a broader population. The growing middle class and increasing purchasing power further enhance the market’s investment appeal.
The growth of lending and NPLs creates ideal conditions for investment in distressed debt. With lending increasing by more than 10% annually, financial institutions are looking for ways to clean up their balance sheets, making the NPL market a significant opportunity.
r2p Invest Singapore has already made substantial progress in the Indonesian market, acquiring 27 NPL portfolios with a total value of €515 million. We work closely with PT Jasa Konsultasi MBA, a local company that is part of the MBA Consult Group, ensuring effective management and collection of acquired portfolios.
PT Jasa Konsultasi MBA
PT Jasa Konsultasi MBA was established in Indonesia in 2015 and is part of the MBA Consult Group, with its headquarters in Jakarta. Company has played a key role in shaping and developing the debt collection industry in Indonesia. It is an active member of fintech associations and is dedicated to promoting clear regulations and industry standards at the legislative level. Its expertise, market knowledge, and commitment to compliance make it a reliable partner in ensuring the efficiency and success of NPL portfolio management.
