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Indonesia Strengthens Literacy and Monitors Digital Finance Platforms

The Ministry of Communication and Informatics together with the Financial Services Authority (OJK) improves public financial literacy as well as on monitoring digital financial platforms. One of the steps implemented by Indonesia is through the National Digital Literacy Movement Program (GNLD) to improve public literacy related to the capital market sector.

Ministry of Communication and Informatics will take steps to support the digital investment sector as the leading sector in guiding Indonesia’s digital transformation agenda. I emphasise that literacy, which is currently still very small, needs to be encouraged, given the government’s efforts to give special attention to encouraging Small and Medium-sized Enterprises (SMEs) to go digital onboarding.

– Johnny G. Plate, Minister of Communications and Informatics

With a continuing positive trend, Indonesia wants to continue to increase the number of financial literacy, use financial technology (fintech) and provide wider access for anyone to invest. GNLD is also intended to enable the public to digest the information on the internet. This includes choosing the right fintech platform to invest in.

The government has compiled a Digital Indonesia Roadmap for 2021-2024 as a guide for the digital transformation of the Indonesian nation. The roadmap is divided into four sectors, namely digital infrastructure, digital government, digital economy, and digital society.

By 2022, the GNLD Program targets to be literate with around 5.5 million participants. Previously, in 2021, the Ministry succeeded in capturing as many as 12.5 million participants in the same program. The Ministry hopes that by 2024 they can reach 50 million people in all corners of the country. This is also a big potential for capital market investors.

The theme of digital investment and the introduction of the fintech world will also be introduced concretely. It is important to do this to coincide with efforts to handle the development of fintech platforms that have the potential to harm the community. Concretely, the theme includes the introduction of the world of non-fungible tokens and blockchain which was carried out this year.

The Ministry has three main tasks in dealing with illegal investment platforms such as binary options. First, they carry out supervision starting from registration of electronic systems and compliance with the principles of personal data protection, Second, conformity of content on digital platforms with applicable laws and regulations, and third, facilitation of requests for termination of binary option platforms.

The Ministry encouraged capital market players to take advantage of digital technology amidst the dynamics of Indonesia which continues to transform digitally. Various digital technologies come with benefits that are relevant to various use cases in the capital market. Through the use of digital technology, the Ministry hopes that joint efforts to create a more inclusive economy will be achieved.

As reported by OpenGov Asia, OJK recently said that it sought to balance between driving the insurance industry’s growth and safeguarding the consumers, as more insurers embrace digital transformation. Indonesia’s high internet penetration offers a huge opportunity for the insurance industry. Data shows 202.6 million people or about 73.7% of the population in Indonesia are internet users. Around 96.4% or 195 million people surf the internet on their smartphones.

OJK itself has been looking to accelerate the insurance industry’s digital transformation under its 2021-2025 master plan. OJK’s policy direction over the next few years includes strengthening tech-based supervision and consumer protection. OJK will also pursue this balance between growth and consumer protection when regulating insurance technology (insurtech).

OJK will soon roll out the technical regulations on insurtech in hopes of its initial goal, namely making regulations that balance industry needs, contribution to the economy and financial system stability, as well as consumer protection. customers could enjoy a more streamlined process if insurers embrace technology. Customers can also save costs, with processes becoming much faster and optimum.

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