JAKARTA – 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 Indonesians’ lack of access to traditional banking services and the country’s strict Internet regulations, experts told The Straits Times.

The large-scale study by US-based technology company 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, such as 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 aged 40 and under. According to data analytics firm Statista, nearly 68 per cent 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 per cent from 2022, according to data.ai.

A spokesman for the firm said 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 lacking 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.

Mr Li Jianggan, chief executive officer 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 for these services are commonly found online in Indonesia, as well as on billboards.

Mr Li added that lending apps like EasyCash are programmes that some users download only when they need to use them, and they delete them thereafter, unlike TikTok or Shopee which they use much more frequently. 

“Therefore, it is not a surprise that the same user might download that app multiple times over the year,” he said.

Compared with finance and personal loan apps, downloads for VPN apps grew even faster, by 59 per cent, according to data.ai.

“VPN apps are popular in Indonesia due to strict Internet regulations and censorship, as they allow users to bypass content restrictions – for example, among video-streaming apps – as well as access blocked websites,” Mr Li said.

Noting that Indonesians have been among the most prolific users of VPNs over the years, Mr Li pointed out that apps such as Netflix had been restricted by the authorities in the past, and people used VPNs to access them.

The data.ai spokesman said more awareness of digital privacy and security among Indonesian Internet users also drives the usage of VPNs, as they offer a layer of protection against surveillance and data theft.

The study also found that Indonesians are the world’s heaviest mobile phone users, with an average usage of 6.05 hours a day. Thailand is second at 5.64 hours, while Singapore is ranked eighth, at 4.51 hours.

Responding to this finding, Mr Li said that just like the millions of Chinese Internet users back in the early 2010s, the majority of the Indonesian population today access the Internet first through their mobile phones.

“Compared with their counterparts in the West who already have access to desktop or laptop computers, it is natural for a lot of Indonesian users to spend their online time only on the mobile phone,” he said.