September 22, 2023

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Digital Finance Ecosystem Accelerates Indonesia’s Economic Recovery

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The Financial Services Authority (OJK) stated that the financial services sector must be backed by fundamental prerequisites, beginning with the establishment of a comprehensive and integrated digital financial ecosystem. Maskum, an advisor to the OJK Digital Financial Innovation Group, remarked that accomplishing this was a collaborative effort that required the help of many people, including regulators, the government, and stakeholders.

The objective, according to the advisor, is to develop a full, integrated, and competitive digital financial ecosystem to accelerate the country’s recovery.

The Covid-19 pandemic, which has affected all business sectors in Indonesia, is the initial source of momentum. However, he believes that this should not be a barrier because OJK sees this as a huge momentum for all economic actors, “including the financial services sector to rise and accelerate digital transformation”.

The second momentum is that Indonesia will now get the handover of the G20 presidency from Italy in 2022. This is a form of international acknowledgement for Indonesia’s successes in dealing with the pandemic problem. Moreover, he believes that these two forces can accelerate the development and application of technology in a variety of areas of people’s life.

The increasing number of digital payments transactions reflects the Indonesian population’s growing digital financial literacy. It also reflects the country’s growing adoption of fintech and e-commerce services. According to Bank Indonesia, digital transactions will continue to expand in 2021, with e-commerce and e-payments increasing by 33.2% and 32.3% respectively. As more e-wallet companies migrate to multi-line enterprises to provide financial services, the industry must increase interconnections among providers to give clients a smoother experience.

Banks are urged to embrace the open banking era by making more application programming interfaces (APIs) available to e-payment companies, Fintechs, and other digital platforms. By utilising APIs, banks will be able to develop a comprehensive payment ecosystem, tap into the current ecosystem, and extend access and market for their services. The adoption of digital banking and even e-wallets is predicted to contribute greatly to economic poverty eradication in the country over time.

OpenGov Asia reported digital platforms have been proven to help ecosystem members adapt, stay resilient, and eventually recover from economic shocks like the pandemic, as well as stimulate economic recovery. The conclusions are based on the most recent research from the University of Indonesia’s Demographic Institute of the Faculty of Economics and Business (LD FEB UI).

The University’s researcher remarked, “Our research finds that during an economic shock, Indonesians persist in looking for new sources of income, and the majority of them dare to take the jump and launch digital-based businesses.” He stated that the emergence of digital platforms and their ecosystem provided a buffer against the economic shock. This is certainly relevant for individuals with no past business expertise who want to jump directly into an online business.

Indonesia can advance digital transformation, notably in the financial industry, according to the Coordinating Ministry for Economic Affairs, as evidenced by the growth of 7.07% in the second quarter of 2021. (Year-on-year). In 2020, Indonesia remained 85th out of 131 nations in the digital innovation index.

Indonesia’s government has launched several programmes to better prepare the country to deal with the potential and problems posed by developing technologies. They are also committed to prioritising infrastructure development, particularly through enhancing connections across the country, as well as accelerating the country’s digital economy’s development. The country’s structural changes are aimed at boosting productivity and competitiveness, as well as reviving industrialisation and encouraging innovation.

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

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SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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