Indonesia

Introduction

Kinesis has formed strategic long-term public-private partnerships (PPP) with multiple government and national entities in Indonesia, commencing with the state-run national postal service, PT POS. The landmark, nationwide integration of Kinesis technology opens up shariah-compliant, physical gold to the entire population of Indonesia.

In Q3 2023, the Vice President of Indonesia, K.H. Ma’ruf Amin, officially launched PT POS’s application, POSPAY GOLD: a Kinesis-powered application offering Indonesian citizens low-cost, instant access to physical gold trading and savings, with gold-based payments and remittance provision to follow.

With full backing from the Indonesian government, the financial technology of Kinesis is providing the unbanked and underbanked communities of Indonesia with vital financial access.

Challenges

The challenges of current financial provision in Indonesia.

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, Indonesians 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.

Solution

The solution Kinesis financial provision presents for Indonesian citizens.

Mobile financial access

Through POS GOLD, 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.

Fair remittance provision

Indonesian citizens will 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

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

Result

The societal and economic impact of Kinesis financial services.

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, and 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 inclusive, sustained economic growth, which betters every member of society.