‘Jockeys’ shine in the depths of Indonesia’s fintech jungle

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Hi readers,

“New year, new me!” We’ve all heard this phrase countless times at the end of the year and, perhaps, even used it ourselves every now and then. Whether it’s starting a business, taking a gym membership, or learning a new language, there’s something about the new year that pushes us to re-evaluate, seek out firsts, and set resolutions to improve.

Unfortunately, that’s the easy part.

Following through on your latest commitments is an entirely different ball game as determination and discipline dwindle once the new year fades into being just another year. We’ve all been there and I’m no different. My French hasn’t gotten any better in the last decade, while my singing is still best performed in the shower.

Hopefully, though, the millions of Indonesians set to enter the formal financial system for the first time will set a better example. Ideally, financial education would’ve helped them weave through the archipelago’s complex fintech wilderness in search of services to power their aspirations. But we don’t live in an ideal world.

In the festive week’s top story, my colleague, Putra, highlights how many first-time Indonesian borrowers are backed into a corner and forced to seek a rather shady solution in the form of online lending “jockeys” to escape a potential debt spiral.

He also charts the rise of these “jockeys,” dissects how they are able to source the cash needed to repay loans within hours or even minutes, and why their existence in the first place lays bare some of the deficiencies in fintech lending in Indonesia.

— Shravanth Vijayakumar, Newsletter editor at Tech in Asia

Top stories this week

Image credit: Timmy Loen

1️. The ‘jockeys’ traversing Indonesia’s fintech wilderness
For the many Indonesians drowning in a pile of debt, there is a solution – albeit a shady one.

2. Investors are betting on this e-bike startup to electrify Vietnam’s roads
Going niche in a niche segment, Dat Bike has cultivated users who are so engaged, they give the startup constant feedback for product improvement.

3. How crypto is killing seed phrases to usher in mass adoption
Expect to hear more about MPC and Account Abstraction in 2023, as well as the beginning of the end for seed phrases.

4. Mass firing, less hiring: Can Indonesia see hope in a grim job market?
The oversupply of talent and scarcity of jobs spell difficulty for many job seekers. But this may benefit the ecosystem in the long term.