"In 2019, Google and Temasek predicted Indonesia would see the fastest growth in ASEAN," he said at the opening of the 2020 Indonesia Fintech Summit in Jakarta on Wednesday.
Hartarto said the share of fintech is currently estimated at US$40 billion, with an annual growth of around 50 percent, and by 2025, the projected value is expected to cross US$100 billion.
This growth could be realized because fintech is the most competitive sector with the development of four unicorns and one decacorn in Indonesia, valued at more than US$10 billion, he added.
“Fintech, together with Industrial Revolution 4.0, e-commerce, and on-demand service, has become an icon or showcase for Indonesia's digital economy," he said.
The fintech sector in Indonesia is growing, which can be seen in comparison to the initial development in 2016, with fintech making inroads not only in payments and lending, but also various business models, including capital rising, digital insurance, and market provisioning, he explained.
"We also appreciate the success of fintech development with the OJK introducing regulatory sandbox regulations that allow innovation to continue," he said.
Hartarto said fintech played an important role in helping achieve the financial inclusion index of 76 percent in 2019, and would support realizing the target of 90 percent by 2024.
"The potential of fintech, with a number of challenges, of course, is primarily (in the area of) financial literacy. (We need to ensure the) Digital (push) is supported by an ecosystem and cross-sectoral collaboration to maximize government programs and initiatives," the minister said.
Meanwhile, according to Hartarto, the challenge facing the fintech sector today is answering the potential problem of open unemployment to encourage MSME or entrepreneurial activities.
"I hope that efforts to accelerate national economic recovery, especially financial inclusion and digital technology with cross-sectoral collaboration, can build and reform as well as regenerate our national economy," the senior minister said. (INE)
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EDITED BY INE
Translator: Astrid F, Azis K
Editor: Suharto
Copyright © ANTARA 2020
