E-wallet feature is disabled, Wise Indonesia users can still use remittance services without holding a balance

Update 06/3/2024 16.00: We added a further statement from Country Manager Indonesia, Wise

users Wise in Indonesia will no longer be able to accommodate funds/balances in the application as of May 23 2024, this is what Wise has announced via email to customers.

Based on the explanation provided, this feature reduction is due to regulations in Indonesia - Wise does not yet have a license for related needs. As is known, to be able to accommodate funds in the application through features e-wallet/electronic wallet, a digital service must be registered as a server-based electronic money provider at Bank Indonesia. This is stated in Bank Indonesia Regulation no. 20/6/PBI/2018.

When contacted DailySocial.id, Wise Indonesia Country Manager Elian Ciptono said, "We have informed our customers that there are changes in the use of Wise in Indonesia. Starting May 23 2024, personal and business users will not be able to use their balances or make transactions with Wise debit cards."

He continued, "Wise users in Indonesia can still send money from Indonesia abroad and vice versa, with average exchange rates and no hidden fees. We realize that this disturbs the comfort of Wise users in Indonesia, but we will continue to be committed to bringing back various services that Wise users are interested in in the future."

Wise is a company from the UK that focuses on providing cross-border remittance or money transfer services. Founded in 2011, the financial technology it offers is claimed to be able to make money transfers online faster and safer --- at a cost 2,5x cheaper than banks or other traditional institutions that provide remittances.

Apart from personal users, Wise also has similar features for business needs. PT Wise Payments Indonesia (their local entity) has a license from Bank Indonesia as a Fund Transfer Provider.

In Indonesia, they compete directly with a number of local platforms, some of which are Topremit, Transfez, Wallex, Oy!, up to Flip.

"Wise Indonesia's main business is inter-border remittance services, in accordance with the license we have in Indonesia, and this business has grown rapidly. ⁠Wise users in Indonesia were previously able to use multi-currency accounts and Wise Cards under licensing of Wise entities abroad, which is done with the knowledge of Bank Indonesia. To avoid misunderstandings regarding the services offered to customers in Indonesia, going forward, the services that will be available in Indonesia will only include remittance services. As our business grows, we hope to be able to provide more many products & services for customers in Indonesia," added Elian.

Wise Indonesia has been around since 2020

According to data from the Ministry of Manpower, as of the first semester of 2023, the total foreign money transfers made by Indonesian Migrant Workers (PMI) have reached IDR 77,35 trillion. The distribution of PMI in various countries has pushed Indonesia to become one of the largest users of remittances in the world. According to the World Bank, Indonesia received approximately $10,5 billion in remittances in 2020, making it the 10th largest recipient of remittances in the world.

Seeing such great potential, Wise was present in Indonesia in 2020. Wise can serve customers in Indonesia who want to send money to 80 countries.

One of the strategies that Wise is intensifying to strengthen its business in Indonesia is collaborating with local players. One year after setup business in Indonesia, Wise collaborates with local player Instamoney as a financial API provider. Instamoney is part of the Xendit Group which was officially founded in 2018.

Then in 2023, Wise will build a partnership with Bank Mandiri. Bank Mandiri is Wise Indonesia's first partner to integrate the remittance platform into its digital banking application.