Financial digitalization is crucial factor in economic recovery: BI

Financial digitalization is  crucial factor in economic recovery: BI

Bank of Indonesia Governor Perry Warjiyo during an online press conference on Thursday, October 21, 2021. (ANTARA PHOTOS/TL/Arnidhya Nur Zhafira/my)

Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo deemed financial digitalization as an important factor to drive national economic recovery during the COVID-19 pandemic.

"Economic and financial digitalization have proven to be important for expediting economic recovery during the pandemic. Digital economic transactions grew very high, supported by easy payment system services as well as changes in the people's preferences for shopping and conducting online transactions," Warjiyo stated during an online press conference, Thursday.

The value of e-commerce and electronic money transactions in 2021 is expected to record high growth, at 48.4 percent and 35.7 percent respectively, he noted. Furthermore, digital economic and financial transactions facilitated by banks are estimated to grow by 30.1 percent, he remarked.

"This (makes us) proud and is one of the sources of national economic growth. More than that, this is one of our contributions to the people's economy," according to the governor.

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Warjiyo also echoed BI's commitment to pushing for digitization of the payment system in a bid to accelerate and integrate the national digital economy and finance.

BI has, in collaboration with the banking and payment system industry, implemented various programs since 2019.

Over time, those efforts have borne fruitful results, and Warjiyo admitted to bearing witness to its rapid progression. Among the successes recorded were the QRIS, which was well-received by users and merchants alike, coupled with the fact that as many as 11.4 million MSME sellers have also been connected to the digital platform.

"This is proof that digital economy and finance serves the needs of the people and advances the people's economy," the governor stated.

On August 17, BI and the related stakeholders launched a single language payment connection service from banks, financial technology, and e-commerce using the National Open API Payment Standard (SNAP) that offers greater convenience on a national scale.

BI will also shortly launch the BI FAST payment infrastructure that is a retail payment system.

Warjiyo spoke of his administration pushing for coordination with the central and regional governments in digitizing economic and financial transactions.

"For instance, we continue to conduct digitalization trials and optimize and expedite social assistance together with related ministries and agencies, banking, and the payment system industry," he noted.

"Similarly, regional financial transaction electronification to boost revenues and expenditures as well as transparency and accountability in regional financial management, (are all) expected to support economic and financial inclusion," he added.

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