Cash is ubiquitous in Indonesia. Here, easy and reliable ways to conduct cash-in/cash-out (CICO) transactions are critical to a growing digital economy and are often the first steps to financial inclusion. The backbone of an inclusive financial system comprises banks and e-money agents. Indonesia has made great strides in creating access to agent networks. More than a million bank and non-bank agents currently operate in the country and the numbers continue to grow. Despite such massive growth, transactions are limited and both individual agents and providers find the economics of sustaining agent networks to be unviable.

With support from the Bill and Melinda Gates Foundation (BMGF), Boston Consulting Group (BCG) collaborated with MicroSave Consulting (MSC) to conduct a study on the economics of CICO agent networks in Indonesia. The study is part of the Foundation’s global initiative on agent networks that works to generate actionable insights on building more sustainable CICO networks. The objective of the study was to provide insights into the economics of existing and potential CICO networks in Indonesia. Through this study, we outlined opportunities to enhance CICO model economics and increase reach to underserved populations, especially in rural geographies. The study also provided valuable and actionable insights to providers and policymakers for them to enhance the viability of CICO networks in Indonesia.

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