indonesia, australia establish fintech network

indonesia, australia establish fintech network


Jakarta (ANTARA News) - The Indonesian delegation has met with Australia`s Financial Technology (Fintech) Association in Sydney and Melbourne, on Thursday to discuss a number of topics on financial inclusion and efforts to build a stronger fintech industry network.

A statement from the Indonesian Fintech Association received by ANTARA here on Thursday mentioned that Indonesian companies participating in the meeting were active businessmen in the field of peer-to-peer (p2p) lending, payments and investments.

The Indonesian delegation consisted of financial regulators and representatives from 16 companies.

It is also comprised of senior officials from the Financial Services Authority (OJK) and the Indonesian central bank, Bank Indonesia (BI). They are on a three-day visit in two Australian cities, Sydney and Melbourne.

The meeting initiated by the Indonesian Fintech Association and the Australian Fintech Association was aimed at building stronger networks and cooperation between the two countries in financial technology industry.

"Australia and Indonesia have an active and profitable technological ecosystem. We are building relationships between the two countries," Australian Fintech Association`s CEO Danielle Szetho said.

Indonesia is developing as the 2nd largest fintech and startup center in Southeast Asia which was marked by 53 investment projects in fintech industry which is predicted to be completed by 2017. Up to now, a total investment of US$3 billion has been distributed to support startups and a number of companies` initial stage.

Currently, Australia has a very active fintech industry with a growing number of companies from 100 in 2014 to nearly 600 today. These companies are dominated by fintech which one of five start-ups are engaged in fintech.

"Our market is very different and it provides a great opportunity to innovate if we can work more closely to help companies understand their markets," Szetho added.

Meanwhile, Executive Director of the Public Policy of the Indonesian Fintech Association, Ajisatria Suleiman, said the two countries have opportunities in developing fintech industry in Indonesia.

According to him, there is still a great opportunity to support the growth of online transactions in Indonesia which is currently estimated at US$130 billion, and serve micro, small, and medium enterprises (MSME) which are currently only 9 percent or about 4.6 million of these sectors are online.

The meeting between the two fintch associations also focused on financial inclusion which is the main pillar in reducing poverty. The fintech industry is identified as one of the potentials that can promote financial inclusion, both for businesses and individuals.

The fintech industry in Indonesia with at least 157 companies continue to build a favorable business environment related to regulation, infrastructure and technology networks, as well as markets.

"I see firsthand the potential of cooperation between Australian and Indonesian business actors in building technology companies. We just need to build closer relationships to open bigger opportunities," Managing Director of Kejora Ventures, a finance company in Indonesia Andy Zain said.

In April 2017, the Australian Securities and Investments Commission (ASIC) and OJK signed an agreement to promote financial service innovations in each country.