Indonesia has 2,100 start-up companies: OJK

Indonesia has 2,100 start-up companies: OJK

Screenshot of the Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso during the 2021 OJK Virtual Innovation Day in Jakarta, Monday (Oct 11, 2021). ANTARA/Sanya Dinda/ak

Jakarta (ANTARA) - Chairman of the Financial Services Authority (OJK) Wimboh Santoso drew attention to the presence of 2,100 start-up companies in Indonesia.

“Up until September 2021, there were seven unicorns and two decacorns. The growth of this innovation cannot be separated from the authority's policies that encourage the presence of digitalization," Santoso noted during the OJK Virtual Innovation Day 2021 monitored online in Jakarta on Monday.

The OJK continues to encourage financial service providers in Indonesia to remain relevant and responsive to technological developments, he affirmed.

“Thus, they can provide added value to the community to create jobs, foster economic growth, and guide the society into using financial services that are often referred to as fintech,” he remarked.

The OJK continues to collaborate with the financial sector's regulatory authorities in other countries, so that they have the same policy steps related to digitization in this sector, he affirmed.

As the COVID-19 pandemic has driven digitalization in various sectors, including finance, the OJK will continue to formulate policies to expedite the implementation of digital transformation.

This policy will focus on two aspects.

"First, to support the use of digital technology in the financial services sector to provide cheap and competitive product services to the public because our competition is global, and there are no space and time limits," Santoso affirmed.

Furthermore, the OJK will continue to offer convenience and expand the reach of financial technology to people unable to access banking services.

"The OJK also encourages MSME players (micro, small and medium enterprises) to enter the digital ecosystem," he affirmed.

The Indonesian government is striving to optimize productivity of the digital economy that is projected to record an around 23-percent growth, or equal to US$124 billion, by 2025, Communications and Informatics Minister Johnny G. Plate earlier stated.

"Through optimization of productivity, driven by digital transformation, the national GDP is estimated to increase by one percent in 2024. Meanwhile, the value of Indonesia's digital economy in 2025 is also forecast to grow to 23 percent, which is around US$124 billion, or equivalent to Rp1,781 trillion," Minister Plate remarked during a working meeting with Committee I of the Regional Representatives Council, Wednesday.

Indonesia's digital economy was valued at US$44 billion last year, contributing some four percent to the gross domestic product (GDP). Indonesia's digital economy accounts for nearly 42 percent of the total value of the digital economy in the Southeast Asian region, Plate pointed out.

This huge contribution was driven by the strength of Indonesia's digital demographics, reaching 202.6 million people, or 73.7 percent of the total population in January 2021.

"We believe that this will be one of the driving factors for the positive movement of the national economic growth in future," he stated.

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