Economists Says Fintech Value Help Government to Accelerate Economic Recovery
Indonesian Fintech (photo: AMYunus.com)
BUMNINC.COM | Economist Josua Pardede assessed that financial technology or Fintech plays a role in helping the government accelerate economic recovery because of the ease and speed offered amid the COVID-19 pandemic.
“The government in the non-cash method of distributing social assistance means that it has implemented Fintech and at the same time this can accelerate economic recovery,” said Josua Pardede in a statement in Jakarta, Wednesday (11/11/2020).
According to him, the presence of Fintech is also a solution for MSME players to upgrade to class, especially in access to financing.
One of the Fintech models is an online lending and borrowing company or P2P lending that brings together fund owners and borrowers through application companies.
“One part of Fintech is e-commerce. If the sale of goods for MSMEs in the trade sector has a market place, of course, it can survive without relying on online transactions,” added the PermataBank economist.
Fintech is also expected to encourage Indonesian financial inclusion, which in 2019 reached 76 percent, and financial literacy which is still low, namely 35 percent.
“There is no doubt that digital or fintech transformation, one of which will support Indonesia’s economic recovery and boost the productivity of MSMEs,” explained Josua.
For this reason, he encouraged the government to accelerate the development of digital infrastructure in remote areas to support digital financial literacy and inclusion through the role of Fintech.
The government in the 2021 State Budget has allocated a budget of IDR 29.6 trillion for the development of information and communication technology (ICT) which is expected to support the digital transformation to remote villages.
Based on data from the OJK, as of September 2020, the number of fintech in Indonesia has reached 286 entities. Of these, 124 are registered P2P lending companies and 33 are licensed by the OJK, 84 are registered digital financial innovation companies, and three licensed equity crowdfunder’s. [] # bumninc.com
