The world’s fourth most populous nation, Indonesia’s emerging middle class alone is expected to grow to 140 million in the next 10 years. With exceptionally low insurance penetration (2.1% of GDP) and only 36% of adults with a bank account, the need for financial inclusion is great.
LeapFrog’s investment in Reliance Capital Management is aimed precisely at meeting this social need and business opportunity. A home-grown company, Reliance intends to become the financial supermarket for Indonesia’s mass-market. Founded by entrepreneur Anton Budidjaja, the group includes Indonesia’s fourth largest group health insurer, a fast growing life and general insurer insurance operations, and a listed retail-focused securities arm.
Reliance currently reaches over 4.4 million people via almost 900,000 customers across the country, with deep reach into rural areas and a trusted brand name. The company recently acquired a stake in Bank Kesejahteraan Ekonomi (BKE), a general bank with a focus on financial inclusion, giving it potential to reach a further 2 million addressable customers via cooperative relationships.
LeapFrog led this co-investment with FMO and PartnerRe, creating a partnership that will inject strategic capital and diverse skillsets to help boost Reliance’s reach to millions across the country.
Says Anton, “There is a real need for Indonesia to grow its financial services sector. LeapFrog, FMO and PartnerRe are here to help us grow, and to make an increasing contribution to the industry.”
“There is a real need for Indonesia to grow its financial services sector. LeapFrog, FMO and PartnerRe are here to help us grow, and to make an increasing contribution to the industry.”