VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the growth of the Indonesian financial technology (fintech) industry is predicted by Google and Temasek to experience the fastest growth in ASEAN.

"In 2019, Google and Temasek predict Indonesia is the fastest growth in ASEAN," he said at the opening of the 2020 Indonesia Fintech Summit in Jakarta, Wednesday.

Airlangga said they currently estimate the role of fintech at $40 billion with an annual growth of around 50 percent and in 2025 the projected value is more than $100 billion.

We can realize this because fintech is the most competitive sector with the development of four unicorns and one decacorn in Indonesia, whose value is over 10 billion US dollars.

"Fintech together with the industrial revolution 4.0 e-commerce on-demand service has become an icon or showcase for Indonesia's digital economy," he said.

He explained that fintech in Indonesia is growing, which can be seen from the initial development in 2016 which not only focuses on payments and lending but also various business models including capital rising, digital insurance, and market provisioning.

"We also appreciate the success of fintech development with the OJK introducing regulatory sandbox regulations that allow innovation to continue," he said.

Airlangga said that fintech plays an important role in achieving the financial inclusion index of 76 percent in 2019 and will support realizing the target of 90 percent by 2024.

"The potential of this fintech with a number of challenges, of course, is primarily financial literacy. Digital is supported by an ecosystem and cross-sectoral collaboration to maximize government programs and initiatives," he said.

Meanwhile, according to Airlangga, the challenge facing fintech today is answering the potential challenge of open unemployment in order to encourage MSME or entrepreneurial activities.

"I hope that efforts to accelerate national economic recovery, especially financial inclusion and digital technology with cross-sectoral collaboration, can build and reform as well as regenerate our national economy," he said. (Antaranews)