The Finance Ministry will create tax-related policies for the financial technology (fintech) industry, taking into account the sector’s development growth.

"The Indonesian government, especially the Finance Ministry, is constantly in dialog with the industry over the tax regime that can be seen as fair taxation," Finance Minister Sri Mulyani stated at the 2019 Indonesia Fintech Summit & Expo in Jakarta on Monday.

Mulyani highlighted the criticality of applying this measure to ensure fair treatment for conventional and digital companies in Indonesia. Thus, the government has steadily worked on digital taxation policies, particularly for startups and e-commerce businesses.

The minister expounded that fair taxation is not only applied to digital business players in Indonesia but also in other countries, as there are no restrictions on digital economic activities. "This is since many transactions are borderless, so we will prepare policies that are more global and borderless but still fair," she emphasized.

At the same time, Mulyani remarked that the formulation of policies necessitated better data management in the form of collection, use, and security of customer data. "In my opinion, Indonesia needs rules or laws. We currently have the Electronic Information and Transactions Law, but can the law provide security and data safety properly? I think we must set it again. This is what the government keeps developing," she explained.

Furthermore, the government is currently focusing on infrastructure development to improve access to digital technology in Indonesia, as people outside Jakarta and Java yet face difficulties in getting access to technology. "This is an effort to prepare the community and economy to benefit from the development of technology, including fintech," he noted.

Infrastructure development is apparent in the form of the construction of three Palapa Ring broadband projects, as well as airports, ports, and roads, in addition to improving the quality of human resources (HR) through the education and vocational budget. "We want to ensure that Indonesia is a country that does not discriminate against the use of fintech or digital technology," Mulyani added. (REPUBLIKA)


Coordinating Economic Affairs Minister Darmin Nasution affirmed that the swift growth of financial technology (fintech) has played a key role in reaching the financial inclusion target for 2019 at 75 percent.

"We believe in innovation in the digital and technology industry to reach the target of financial inclusion faster," Nasution remarked on the sidelines of the Indonesia Fintech Summit & Expo 2019 in Jakarta on Monday.

Indonesia's Gross Savings Ratio was currently measured at a mere 31 percent, below Singapore and China, respectively at 46 percent, and Thailand, at 34 percent.

"This has become a basis for the government to launch the Inclusive National Financial Strategy (SKNI) through Presidential Regulation No. 82 of 2016," he remarked.

According to data of the Association of Indonesian Fintech (Aftech), unbanked and underbanked citizens constitute 70 percent of the fintech portfolio.

"This is especially in payment and the lending market. The rapid growth in businesses has encouraged the growth of fintech agents," Nasution elaborated, adding that fintech has offered fast, affordable, and safe services for the public, so it can boost digital economy in Indonesia.

The minister is upbeat about fintech being able to reach people in Indonesia’s remote and outermost regions along with improving education and protection to customers.

"I am upbeat about fintech being able to integrate with the real sector that has adopted the technology," Nasution remarked.

According to Findex, 48.9 percent of adults in Indonesia have access to financial institutions, surpassing the 2014 figure of merely 36 percent. However, the OJK had

recorded that 68.7 percent of adults in Indonesia had access to financial institutions. (ANTARA)


Three Indonesian fintech associations have signed a joint code of conduct Tuesday, in a bid to show goodwill from the industry to create a good market conduct in the financial technology sector.

After the signing ceremony, the three associations, Indonesia Fintech Association (AFTECH), Fintech Joint Finance Association (AFPI), and Indonesia Sharia Fintech Association (AFSI), pledged to abide by the norms and ethics of the fintech business in Indonesia.

"AFTECH, AFPI, and AFSI are the 'three-musketeers' of the fintech industry that have been regulating and implementing an ethics code or code of conduct which applies to all our members," AFTECH Managing Director Mercy Simorangkir said in Jakarta, Tuesday.

A joint code of conduct is needed to ensure no ethic intertwines, noted AFPI Chairman Adrian Gunadi.

"Besides, general affairs, such as data protection and information transparency should also be part of this synchronization," he said.

More importantly, this code will boost the confidence of the public in the fintech industry.

"This joint code of conduct should be able to boost public confidence so that we understand the rapid innovation," said AFSI Chairman Ronald Yusuf Wijaya.

The signing was held on the sidelines of Indonesia Fintech Summit and Expo 2019 on September 23 and 24.

It was witnessed by Chairman of Indonesia Finance System Association (ASPI) Anggoro Eko Cahyo and participants of a panel discussion at the summit. (ANTARA)



Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan has made assurance that the United Arab Emirates (UAE) will follow through on its plan to invest in Indonesia prior to 2019-end.

Crown Prince Syekh Mohamed bin Zayed Al Nahyan will hold talks with President Joko Widodo (Jokowi) to discuss the follow-up of the agreements that both nations have reached, Pandjaitan noted in a press statement released on Monday.

"I have had direct communication with Crown Prince Syekh Mohamed bin Zayed Al Nahyan, who pledged to telephonically contact President Joko Widodo on Monday to discuss the follow-up of the agreements that we have made with dialog partners," he noted.

Pandjaitan admitted to the Abu Dhabi Crown Prince urging him to expedite the realization of several points in the agreements to facilitate the realization of some investment plans before the conclusion of this year.

The Crown Prince will also officially invite President Widodo to visit the UAE in January 2020 to attend the opening ceremony of Abu Dhabi Sustanability Week in Abu Dhabi.

Pandjaitan confirmed the receipt of a report by Finance Minister Sri Mulyani from Director General of Financing and Risks Management of the Finance Ministry Luky Alfirman and acting president director of PT Sarana Multi Infrastruktur (Persero) Edwin Syahruzad, who had also joined Pandjaitan during the visit to UAE last week.

Pandjaitan remarked that the finance minister had concurred to visit the UAE to further discuss the issue.

Among the agreements reached during Pandjaitan’s visit to the UAE comprised forming the Indonesian Sovereign Wealth Fund and implementing Abu Dhabi’s investment worth US$1 billion in property project and real estate, including the development of tourist destinations. (ANTARA)

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