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.
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.
For an in-depth insight into our project in Indonesia, read our case study.
Manage your gold assets and utility payments in one app
