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Kinesis In Indonesia: Kinesis First PPP

Financial Inclusion Through Strategic Partnerships

Kinesis has forged significant long-term Public-Private Partnerships (PPP) with national and governmental organizations in Indonesia, starting with PT POS, the state-owned national postal service. These collaborations have enabled the rollout of Shariah-compliant physical gold access to the entire Indonesian population, leveraging Kinesis’ financial technology.

Key Developments and Solutions

PosPay Gold Launch

In Q3 2023, the POSPAY GOLD application, powered by Kinesis, was launched by Indonesia’s Vice President, K.H. Ma’ruf Amin (s. video below). PosPay Gold provides Indonesians with:

• Efficient gold trading and storage: Users can trade and securely store allocated gold.
• Future financial capabilities: Features for remittances and gold-based payments are planned.

Empowering Financial Inclusion

• Through platforms like POSPAY GOLD and NUNOMICS APP, Kinesis extends crucial financial services to Indonesia’s unbanked and underbanked populations.
• This initiative operates with the full support of the Indonesian government, aiming to address longstanding financial challenges.

The Challenges

• Limited Financial Access: Approximately 70-80% of Indonesia’s population either lacks sufficient banking access or is entirely excluded from the financial system. This leaves many individuals and households without the means to safely deposit or save money, undermining their financial security.

• Exploitative Remittance Services: Cross-border payment options are limited and dominated by providers charging exorbitant fees, averaging 5% per transaction, forcing Indonesians citizens to rely on profit-driven remittance services.

• Non-Inclusive Financial Services: Traditional interest-based or debt-related financial services conflict with the religious beliefs of 87% of Indonesians, leaving many without access to conventional financial solutions.

The Kinesis Solution

1. Affordable Mobile Financial Access
   • The PosPay Gold provides economically disadvantaged Indonesians with affordable tools for savings and payments in allocated gold gold.
   • Accessible via smartphones, the app ensures even remote areas benefit from modern financial services.
2. Fair Remittance Options
   • Kinesis introduces fast and affordable cross-border payment capabilities – requiring only a smartphone and internet connection – with fees for international transfers are capped at less than 1%, offering a cost-effective alternative to traditional remittance providers.
3. Shariah-Compliant Financial Services
   • Supported by the Sharia Supervisory Board, formed by the National Sharia Council, PosPay Gold adheres to Islamic financial principles.
   • Indonesians can invest in gold bullion and manage their finances without incurring interest or debt-related costs.

Please refer to this paper for an overview of Kinesis’ involvement in Indonesia, including their individual initiatives and collaborations with Indonesian governmental agencies: A people-centric public-private partnership: the case of Indonesia