Digital Economy to Boost Indonesia’s Economy: OJK
Digital economy will speed up Indonesia’s growth rate as various digital platforms continue to develop, including those in the financial services sector, according to Head of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso.
“There are many developing digital platforms in the financial sector and they all will continue to boost our economic growth in this digital era and will also strengthen our competitiveness so we will be the key player in our own country,” Wimboh told the press after a limited meeting on the downstream process of digital economy led by President Joko “Jokowi” Widodo in Jakarta, Thursday (10/06).
According to Wimboh, Indonesia’s digital economy potential is also supported by its 270.2 million population from Sabang to Merauke, while expressing hope that local digital service providers can make the most of the potential so that the potential will not be taken by other nations.
“We are certain that it is a momentum that we must push for and develop; thus, a digital-based economy will be the backbone of our future economy,” he said, adding that since 2017 his agency has been planning for digital transformation acceleration in the financial services sector.
“All policies the OJK have been implementing since 2017 are designed to accelerate digital transformation of financial businesses. Why? Because it is a global competition. Like it or not, it must be based on digitalization,” he said.
Wimboh went on to say that his agency has had a masterplan to digitalize the financial services sector, a part and parcel of the national digital economy development.
“We are aware that people do not have to go to a bank to transfer money these days. This is a form of a banking digital product. Besides, if we want to apply for loans, we have to urge (potential debtors), especially micro, small, and medium loans, not to come in person,” he said, adding that digitalization will provide better, more affordable, faster, and easier services and cover a wider area.
“We are certain that with digitalization, the financial sector will attract more customers at a lower cost. It will give contribution to our economic growth, faster and bigger,” he remarked.
Wimboh stated that various digital financial services or fintech continue to grow and develop, with one of the increasingly popular services being lending service through fintech peer-to-peer (P2P) lending or fintech lending.
“Loan (through the scheme) is not only provided by financial agencies or banks but also through a peer-to-peer scheme. The amount loan provided by P2P is huge, namely Rp194.1 trillion,” he said.
For the record, to date as many as 146 fintech lending companies have been registered with and authorized by the OJK, but many other entities have neither been registered nor authorized.
“There are many illegal (fintech lending companies) and we will certainly force them to comply with the prevailing regulations,” Wimboh said, adding that apart from fintech lending, there are also shares offering services through digital securities crowdfunding.
“So for young adults who have not had credit records in banks, they can issue debt securities through a capital market that we call securities crowdfunding, especially when they have projects, including projects with the Government,” he remarked. (FID/UN) (DH/EP)