According to a news release issued by Finnet Indonesia here on Tuesday UB Global Academy Director, Jun Young Lee, said at BICC Westin Nusa Dua, Bali on Saturday (13/10) that Indonesia is a growing economy with a large population but most of the community payment transactions are still in cash.
According to him, this potential makes Harex Info Tech, a company based in Seoul, South Korea, which develops UBpay, providing technology support to Finnet Indonesia through its application called Finpay.
PT Finnet Indonesia is a joint venture company established by PT Telekomunikasi Indonesia or Telkom, through its subsidiary PT Multimedia Nusantara, with the Bank Indonesia Employee Welfare Foundation (PT Mekar Prana Indah).
Lee said that the mechanism implemented by the financial technology application is different from the similar system that is currently run by other big names, namely there is no intermediation.
The users of Finpay application, he said, make payments that are authorized by banks or financial institutions directly through any technology like QR, NFC, barcode, BLE, loop, sound, etc (all types of current technology and future's) when making transactions at merchants or "merchants".
"This guarantees security and reduces transaction costs to be cheaper," he said.
In addition, through this application users do not need to deposit a certain amount of money or do not need to add funds as other applications have done so far.
Not only that, Lee also said that the whole mechanism was run by local companies in Indonesia, namely Finnet.
Lee is optimistic that Finnet has reliable infrastructure in carrying out the financial technology mechanism.
The presence of the application is expected to reduce the number of people who still can not access the banking system and other financial institutions.
In addition, it also provides other services including financial technology for medical services, cash withdrawals, payment of parking, toll payments and other transactions.
Finnet, he continued, had already begun a meeting with one of the People's Credit Banks (BPR) in Surabaya which would be used as the "fintech" pilot project.
BPR, he said, is one of the leading financial institutions and close to the community, especially in rural areas.
Lee said that currently the cooperation with Finnet Indonesia was still in the showcase stage and was piloted after the signing of the memorandum of understanding had been held in March 2018.
He hopes that the collaboration can be carried out starting in 2019 after the showcase stage.
Reporter: Budi Setiawanto
Editor: Gusti Nur Cahya Aryani
Copyright © ANTARA 2018
