Indonesia

A people-centric public-private partnership

Introduction

Kinesis has formed a strategic long-term public-private partnership (PPP) with the Indonesian state-run national postal service, PT Pos. The landmark, nationwide integration of Kinesis payments and savings technology opens up shariah-compliant, physical gold as a currency for the entire population of Indonesia.  

Through the PT Pos mobile application – PosGo Syariah – Kinesis offers all Indonesian citizens low-cost access to gold savings programs, as well as remittances and everyday payments in physical gold.

With full backing from the Indonesian government, the payments and savings infrastructure of Kinesis is set to provide the unbanked and underbanked communities of Indonesia with vital financial access.

70,000

Service points

24,000

Employees

3rd largest

Postal service globally

Challenges

Poor financial access

Across the nation of Indonesia, an estimated 70-80% of all citizens are unbanked or underbanked. These Indonesian citizens are left stranded outside of the financial system, deprived of financial access. Unable to save funds securely, the unbanked and underbanked live with no financial security. 

Exploitative remittance services

Limited remittance provision in the region provides Indonesian citizens with no cost-effective solution for cross-border payments. As a result, Indonesian citizens are left at the mercy of costly and profit-centric providers, with remitters in the region charged an average fee of 5%.

Non-inclusive financial services

With 86.7% of the Indonesian population belonging to the Islamic faith, a large percentage of citizens find themselves excluded from traditional interest-bearing or debt-associated financial services for religious reasons.

70-80%

Unbanked or underbanked

260+ million

Population

80%+

Active smartphone users

Solution

Through the rollout of a bespoke mobile application – the PosGO Syariah app – Kinesis is delivering the financially underserved citizens of Indonesia, low-cost mobile access to vital financial services for payments and savings, in the stable value of physical gold.


Low-cost, mobile remittance services

With the PosGO Syariah mobile app, Indonesian citizens require only a smartphone and internet to access instant, inexpensive cross-border payments. With a flat, <1% fee for international payments, the application presents citizens with a fair alternative to remittance provision in the region.

Shariah-compliant financial services

PosGo Syariah is supported by the Shariah Supervisory Board formed by the National Shariah Council. The Shariah-compliant platform enables Indonesia’s predominantly Islamic population to manage their wealth in debt and interest-free gold bullion via mobile devices.

Benefits
Citizens
Government
Financial access
Low cost, shariah-compliant financial services accessible via mobile phone.
Shariah Compliant
All gold is approved as shariah compliant by the Shariah Supervisory Board.
Savings solutions
Unbanked citizens are now able to securely save funds for their future.
Cross-border payments
Low-cost, instant remittance frees citizens from extortionate provision.
Fair remittance provision
Millions of migrant workers can send their monthly remittance to Indonesia fairly.
Trusted source
Access financial services through the familiarity of a PT Pos post office branch.
Financial provision
Provide important financial access to the unbanked and underbanked citizens.
Amass financial data
Accumulate valuable data on a previously unmapped section of the population.
Implement change
Utilise fresh insight into citizens to tailor provision and improve services.
Remittance services
Access remittance revenue, while providing citizens with fair payment services.
Gold-based currency
Amass national wealth in a stable, debt-free physical gold-based currency.
Financial innovation
Access a new income source from a share of every app users’ transaction fees.

Result

The financial empowerment of Kinesis payments and savings solutions and the value of Kinesis remittance provision, will be felt at every level of Indonesian society. Across Indonesia, previously unbanked citizens equipped with the financial tools of Kinesis solutions will begin to carve out a better life for themselves and their families.

The option to save funds securely, allowing them to think beyond the struggles of the present, build towards a brighter future, while preparing for life’s uncertainties. As the value of Kinesis cross-border payments replaces costly remittance providers, additional wealth will flow into the Indonesian economy, through citizens purchasing essentials and investing in wealth creation activities. Over time, Indonesia will experience a rise in living standards and an inclusive, sustained economic growth, which betters every member of society.

Sustainable Development Goals

As a member of the United Nations Blockchain for Impact initiative, Kinesis is committed to utilising our financial technology to further the advancement of the United Nation Sustainable Development Goals agenda.

UN research shows the provision of financial access and remittance services are significant factors in achieving 4 of the 17 SDGS: No Poverty; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; and Reduced Inequalities.

Through the provision of low-cost financial access and ethical remittance provision Kinesis is working towards the attainment of the Sustainable Development Goals in the nation of Indonesia.

Resources

For an in-depth insight into our project in Indonesia, read our case study.

Indonesia Case Study
A breakdown of the benefits of Kinesis’ financial technology on the government and citizens of Indonesia.
Download
Indonesia Country Profile
A brief statistical overview of the opportunity for impact presented by the nation of Indonesia.
Download
Thomas Coughlin
Kinesis Chief Executive Officer
Pivotal moment in the Kinesis journey.
“This is a pivotal moment in the Kinesis journey. We are proud to be working with the Indonesian national government and all the partners involved in this momentous project.

People are increasingly moving away from traditional currencies and I am humbled to present Kinesis as a robust and scalable solution for digitalised and mobilised gold as a currency. Crucially, this project shows just how the Kinesis technology can be applied in the real world at a national level.

Through public private partnerships, which are a core part of our DNA and driver for innovation, we will continue to work with nations across the world to deliver viable solutions for the transformation of an outdated monetary system.”
PT POS
Corporate Spokesman
Systematic solution for a better community life.
“PosGo Syariah is a large ecosystem that integrates many parties to be able to actively conduct trade, business, service, utility, financial transactions as well as an ecosystem that integrates the supervisory work processes of all regulatory agencies in Indonesia with the aim of improving the quality of protection for the community as consumers and forming a systematic solution ecosystem for a better community life.”

PosGo Syariah – Powered by Kinesis

Manage your gold assets and utility payments in one app

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