VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Digitalization has become a driving force for the economy to emerge from the COVID-19 pandemic, encouraging the industry to alter its business model, including public conduct during transactions, according to the Central Bank of Indonesia (BI).

"With the adoption of technology, growth can be higher," Filianingsih Hendarta, Head of the BI Payment System Policy Department, stated during an online discussion in Jakarta on Thursday.

Hendarta believes that the COVID-19 pandemic has brought about another change to speed up the use of digital transactions, so they expect this condition to become an opportunity for industries, especially banking.

Hendarta noted that Indonesia has vast capital to support digitization, including its 269-million populace and 338 million cell phone users.

He pointed out that Indonesia has the fourth-largest number of internet users in the world, reaching 175 million, and a demographic bonus, specifically a larger productive age population.

63 million MSME players have yet to benefit from digital transactions and businesses since data from the Ministry of Communications and Information Technology points to only some 9.4 million players or around 14.8 percent.

BI noted that the volume of online trade transactions, or e-commerce, in the second quarter of 2020 increased to 383.5 million, from 275.8 million in the first quarter of 2020.

In the meantime, the nominal value of e-commerce transactions dropped from Rp58.5 trillion to Rp55.9 trillion.

For non-bank electronic money, the transaction volume in the second quarter of 2020 dropped to 659.3 million, from 782.6 million during the first quarter of 2020.

In the meantime, the nominal value of electronic money transactions reached Rp42.3 trillion, rising from Rp37.2 trillion during the second quarter of 2020.

In the meantime, the nominal value for digital banking transactions was reached Rp6,143 trillion in the second quarter of 2020 or decreased from Rp6,699 trillion during the first quarter.

The volume increased to 1,137 million transactions, from 1,070 million transactions.

"This reflects human behavior adapting to the digital era," Hendarta remarked. (Antaranews)