Fintech instrumental in achieving financial inclusion target

Fintech instrumental in achieving financial inclusion target

Coordinating Minister for Economic Affairs Darmin Nasution at the Indonesia Fintech Summit & Expo 2019 in Jakarta on Monday (Sept 23, 2019). ANTARA/Astrid Faidlatul Habibah/sh

We believe in innovation in the digital and technology industry to reach the target of financial inclusion faster
Jakarta (ANTARA) - Coordinating Economic Affairs Minister Darmin Nasution affirmed that the swift growth of financial technology (fintech) has played a key role in reaching the financial inclusion target for 2019 at 75 percent.

"We believe in innovation in the digital and technology industry to reach the target of financial inclusion faster," Nasution remarked on the sidelines of the Indonesia Fintech Summit & Expo 2019 here on Monday.

Indonesia's Gross Savings Ratio was currently measured at a mere 31 percent, below Singapore and China, respectively at 46 percent, and Thailand, at 34 percent.

"This has become a basis for the government to launch the Inclusive National Financial Strategy (SKNI) through Presidential Regulation No. 82 of 2016," he remarked.

Related news: Digital technology access outside Jakarta remains dismal: Minister

According to data of the Association of Indonesian Fintech (Aftech), unbanked and underbanked citizens constitute 70 percent of the fintech portfolio.

"This is especially in payment and the lending market. The rapid growth in businesses has encouraged the growth of fintech agents," Nasution elaborated, adding that fintech has offered fast, affordable, and safe services for the public, so it can boost digital economy in Indonesia.

The minister is upbeat about fintech being able to reach people in Indonesia’s remote and outermost regions along with improving education and protection to customers.

"I am upbeat about fintech being able to integrate with the real sector that has adopted the technology," Nasution remarked.

According to Findex, 48.9 percent of adults in Indonesia have access to financial institutions, surpassing the 2014 figure of merely 36 percent. However, the OJK had recorded that 68.7 percent of adults in Indonesia had access to financial institutions. Related news: Fintech Summit & Expo begins on Sept 23

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