Fintech can help boost economic growth: ministers

JAKARTA (ANTARA) — Digital financial platforms, or financial technology (fintech), can help fuel the recovery and growth of the national economy, according to Economic Affairs Coordinating Minister Airlangga Hartarto.

“The digital financial sector has very promising potential. Therefore, the existence of various digital financial platforms as domestic players is expected to support the acceleration of economic growth and recovery,” the minister said in an official statement received here on Friday.

The government, along with the Financial Services Authority and Bank Indonesia, is making efforts to make the digital economy and financial ecosystem more competitive, keep up with technological developments, and also ensure legal certainty and protection, including cybersecurity, he said.

Therefore, all stakeholders, including associations and digital platforms, must work together to improve people’s digital financial literacy, he said.

“Digital financial services also need to be more inclusive and able to reach all layers of society; in this case, the fintech industry can act as an enabler for the digitization of business actors, especially MSMEs (micro, small and medium-sized enterprises),” Hartarto added.

He expects that by 2024, the fintech industry will help achieve the national goal of 90 percent financial inclusion, which can be achieved through various services such as the provision of online loans, payment systems and digital financial innovations.

“The government is focused on infrastructure development, both physical and digital, ranging from optimization of fiber optic networks, construction of BTS towers, data centers, Satria 1 and 2 satellites, rollout of 4G networks and 5G testing to to (launch) of low-orbit satellites is enough to reach the entire population, even in the (remote) area,” he shared.

Stakeholders need to encourage research and innovation of fintech products, services and business models, develop digital finance regulations and policies, increase human capacity and improve oversight to drive digital transformation in the industry, the minister added.

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