A new study has found that finance and personal loan apps as well as those that boost Internet security are the most downloaded in Indonesia.
The popularity of these apps, rather than those for entertainment, social media or messaging platforms, stems from Indonesia’s lack of access to traditional banking services and strict Internet regulations, experts told The Straits Times.
The large-scale study by United States-based tech firm data.ai published on Jan 10 found that app downloads from the finance and personal loan genre in Indonesia amounted to about 222 million in 2023.
In second place, at about 194.7 million downloads, was virtual private network (VPN) apps. VPN is a technology that enables a secure network connection over the Internet.
In third place was personalisation apps, like software to change a user’s phone wallpaper, at about 190.5 million downloads.
Social media and communication apps trailed in seventh place at 124.4 million downloads, coming after other categories like photo editing and entertainment apps.The findings were made based on data from Apple’s iOS App Store and Google Play in 2023.
The population of Indonesia exceeds 270 million, with more than half of its people aged 40 and under. According to data analytics firm Statista, nearly 68% of the population in 2022 owned and used a mobile phone.
The number of downloads for personal loan and finance apps in 2023 grew by 22% from 2022, according to data.ai.
A spokesman said that the popularity of personal loan apps in Indonesia is largely due to the country’s high digital and smartphone penetration. He added that such apps, including the popular home-grown moneylending app EasyCash, appeal to a population which lacks access to traditional banking services.
“Apps offer convenience (and) quick approvals, especially among small-business owners and individuals needing short-term financing,” said the spokesman.This, however, also brings challenges to the archipelago, he noted, including potential high interest rates, debt risks, privacy concerns and the need for regulatory oversight and consumer education.
Li Jianggan, chief executive of market research firm Momentum Works, said the download numbers of such apps are due to app developers’ willingness to spend on effective digital marketing. Advertisements on these services are commonly found online in Indonesia as well as on billboards.
Li added that lending apps like EasyCash are programmes that some users download only when needed and delete them thereafter, unlike TikTok or Shopee which they use more frequently.
“Therefore, it is not a surprise that the same user might download that app multiple times over the year,” he said. — The Straits Times/ANN
