President Jokowi calls for a resilient and sustainable digital financial ecosystem

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President Jokowi calls for a resilient and sustainable digital financial ecosystem
President Joko Widodo giving a keynote speech at an OJK-organized event at the State Palace on Monday (11/10). Photo: BPMI SETPRES_KRIS

IO – The digitization trend in recent years, accelerated by the Covid-19 pandemic, must be responded to quickly and appropriately as the emerging digital banking and insurance, electronic payments, and other financial technology innovations has also increased the risk of fraud and financial crimes in the society.

President Joko Widodo calls on his staff to guard and supervise the rapid development of digital finance, while using the momentum to continue building a robust, sustainable and responsible digital financial ecosystem. In addition, there must also risk mitigation efforts against potential legal issues and social problems, as well as to protect the public against loss of funds.

“This rapid development must be guarded, and at the same time, facilitated so it can grow healthily for the benefits of our economy and society. If we can control it quickly and properly, Indonesia has great potential to become a digital giant after China and India, leading us to become the world’s 7thn largest economy in 2030,” he said in a keynote speech at the 2021 Virtual Innovation Day held by the Financial Services Authority (OJK) at the State Palace, Monday (11/10).

Peer-to-peer (fintech) financing must also be channeled for productive activities, to provide easier access for people underserved by traditional banks, and to help micro, small and medium-sized enterprises (MSMEs) conduct more digital transactions, and help them enter the digital age.

“I entrust it to the OJK and business players in this ecosystem to ensure that the financial inclusion is achieved, followed by accelerated financial and digital literacy, so that the advancement and innovation in digital finance can beneft the wider community and promote more inclusive economic growth,” he explained.

He added that financial inclusion must also provide wider access to the society, especially the lower-middle class segment, to reduce social inequality and reach those who are yet bankable.

According to President Jokowi, digital financial service providers must also be Indonesia-centric, not Java-centric, to help accelerate the transformation of digital finance equitably across the country. Therefore, he asked the entire financial services industry to carry out financial and digital literacy programs starting from the village and outer regions. “Not just to help people make good use of the services offered by the fnancial industry, but
also facilitate their entrepreneurship drive with low-risk loan,” he added.

The President hopes that a resilient and sustainable digital financial ecosystem can help accelerate national economic inclusion program and contribute to the ongoing economic recovery momentum.

“Your commitment, support, and hard work are eagerly awaited by the economic actors, especially the micro, small and medium-sized enterprises
so they can recover and rebound from the impact of the Covid-19 pandemic and take advantage of new opportunities that are now emerging,” he emphasized. (Ekawati)