Indonesia poised to become seventh-largest economy globally by 2030

Indonesia poised to become seventh-largest economy globally by 2030

Screenshot of President Joko Widodo (Jokowi) at the OJK Virtual Innovation Day at the State Palace, Monday, October 11, 2021. (ANTARA/Indra Arief/rst)

Jakarta (ANTARA) - Indonesia can become the world's seventh-largest economy by 2030 in the event of swift and apposite growth in digitalization in the economic and financial sectors, according to President Joko Widodo (Jokowi).

"If we control it quickly and accurately, Indonesia has great potential to become a digital giant after China and India, and the seventh-largest economy in the world in 2030," Jokowi stated at the Financial Services Authority (OJK) Virtual Innovation Day on Monday.

Currently, digitalization is growing rapidly in the midst of the COVID-19 pandemic. Digital banks, digital insurance companies, electronic payment companies (e-payments), and technology-based financial services (fintech) are emerging and become more accessible to the public. However, various frauds and other financial crimes have emerged amid rapid digitization.

Hence, President Jokowi has reminded the OJK and the financial service industry to maintain and oversee the development of digitalization of the financial sector to contribute to the community's economy.

"This momentum must be continued with efforts to build a strong and sustainable digital finance ecosystem, such as a responsible ecosystem," he stated.

The president called for the digital economic and financial ecosystem to have policies in place to mitigate the risk of legal and social issues that will create problems for the community. Moreover, the digital ecosystem must offer protection to the community.

Related news: UNO pledges to make Indonesia world`s fifth biggest halal economy

Meanwhile, to support the national economy, financial activity of the digital financial industry can be distributed for productive economic activities and target people that are not covered by conventional banking services.

"Digital finance can also help the Micro, Small, and Medium Enterprises (MSMEs) sector to conduct more digital transactions with minimal physical activity and also to bring MSMEs into the digital world," President Jokowi emphasized.

The head of state also urged providers or digital financial companies to be Indonesia-centric, thereby translating to the fact that digital financial business and operations are not solely centered in Java Island but to also offer digital financial services across the country.

"We are awaiting the digital financial industry's commitment to help MSMEs to immediately rise from the impact of the COVID-19 pandemic and be facilitated to take advantage of new opportunities," President Jokowi added. 

Related news: Indonesia`s economy can grow higher: World Bank