Indosat Ooredoo Hutchison and Mastercard have formed a strategic alliance to transform Indonesia's digital payment landscape. Through this agreement, both organizations hope to create innovative digital solutions and experiences that will empower consumers and businesses while also supporting financial inclusion and boosting the expansion of the country's digital economy.
Ritesh Singh, director and chief commercial officer of Indosat Ooredoo Hutchison, and Navin Jain, president director of PT Mastercard Indonesia, signed the Memorandum of Understanding (MoU) to cement this cooperation. Meanwhile, Vikram Sinha, president director and CEO of Indosat Ooredoo Hutchison; M. Buldansyah, director and chief business officer of Indosat Ooredoo Hutchison; Ari Sarker, president, Asia Pacific at Mastercard; and Safdar Khan, division president, Southeast Asia at Mastercard, were also present at the signing ceremony.
Vikram Sinha said, "This strategic collaboration is aligned with our larger purpose to connect and empower Indonesia by accelerating the nation's digital transformation. Digital upskilling and financial inclusion, especially those in rural areas, is key to unlock and maximize the potential of every Indonesian. With the spirit of Gotong Royong, this joint effort with Mastercard will allow us to create infinite financial solutions for accelerating the digital economy growth of Indonesia."
As the largest economy in Southeast Asia, Indonesia has seen exponential growth in its digital economy. According to projections, the value of Indonesia's digital economy will double to US$130 billion by 2025, and it is expected to skyrocket to US$220 billion to US$360 billion by 2030. This initial expansion has been followed by dramatic changes in Indonesian demography and consumer behavior.
“Digitization is a key pillar in the roadmap towards a truly inclusive economy. The digital economy can bring more opportunities to more people, but reaching that potential requires close collaboration. Hence, Mastercard is excited to work closely with Indosat — a partner that shares the same commitment — to empower Indonesians for the digital future, bring more individuals and SMEs into the digital ecosystem and help advance inclusive growth for the Indonesian economy. This partnership also underscores Mastercard's commitment to bring one billion people and 50 million micro and small businesses into the digital economy globally by 2025,” said Ari Sarker.
Indosat and Mastercard's collaboration aims to raise security standards and create trust within the digital ecosystem, resulting in a safer and more inclusive digital economy that fosters widespread participation. By uniting their expertise, both organizations intend to launch scalable products and solutions that prioritize safety and cybersecurity, enabling seamless digital experiences that correspond with consumers' and businesses' expanding lifestyles and transaction preferences in the digital era. The alliance also wants to help SMEs succeed in the digital-first market that has developed in the aftermath of the epidemic by providing them with cutting-edge tools and resources.
The two companies will explore consumer-focused solutions to drive digital payments via cards and account-based payment mechanisms as part of their collaborative efforts. They will also improve credit access through initiatives such as Buy Now Pay Later (BNPL), tighten payment method security and develop ways to improve consumer engagement and reward programs.