In technology governance, focus on aligning business strategy and information technology investment in order to create business value for investment and information technologyJakarta (ANTARA) - Bank Indonesia recorded that the value of digital banking transactions reached Rp3,468.4 trillion in August 2021, or grew 61.8 percent on an annual basis (year-on-year/yoy).
In addition, the value of Electronic Money (EU) transactions was recorded to increase by 43.66 percent (yoy) to Rp24.8 trillion in August 2021.
Meanwhile, the value of payment transactions using cards, such as ATM cards, debit cards, and credit cards, was recorded at Rp633 trillion, or grew 5.85 percent, in August 2021 (yoy).
On the cash side, circulating currency (UYD) in August 2021 increased by 10.73 percent (yoy) to reach Rp843.9 trillion.
In addition, the number of merchants utilizing the Quick Response Code Indonesian Standard (QRIS) had reached 12 million as of early November 2021, according to Bank Indonesia.
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QRIS is the national standard for facilitating payments using QR codes in Indonesia.
In a statement, Bank Indonesia (BI) Governor Perry Warjiyo noted that the utilization of QRIS for transactions in various sectors had proffered myriad benefits.
The benefits include encouraging economic efficiency, accelerating financial inclusion, reducing the risk of COVID-19 transmission, and also promoting MSMEs (micro, small, and medium enterprises), he noted.
"The increase in the utilization (of QRIS) and the support from all parties, including the community, will help accelerate national economic recovery," Warjiyo remarked.
The achievement cannot be separated from the support and synergy of several parties, especially the central and regional governments, the Indonesian Payment System Association (ASPI), Payment Service Providers (PJP), and all elements of society, he added.
Bank Indonesia (BI) Governor Perry Warjiyo remarked that economic transactions and digital finance will continue to increase in August 2021.
Warjiyo noted that the increase is in line with the public's acceptance and preference for online shopping, the expansion of digital payments, and the acceleration of digital banking by all banks in the country.
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Warjiyo emphasized that BI will continue to strengthen the integration of the Digital Financial Economy (EKD) ecosystem through strengthening payment system policies and policy coordination with relevant authorities.
Policy coordination with the government related to the implementation of the trial of digitizing social assistance and electronification of government transactions will also be strengthened to encourage the realization of government spending.
ASPI Chairman Santoso Liem lauded the achievement and described the payment system as an effort made by the payment system industry to contribute to assisting community activities amid the pandemic.
The industry is committed to continuing to expand the recognition of QRIS in various sectors as well as educating and inviting the public to use it in order to encourage financial inclusion in Indonesia, he affirmed.
He made assurance that industry players are ready to help the community migrate to the digital economy and financial era by utilizing the extensive network in various regions, including through online registrations.
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Blueprint
The Financial Services Authority (OJK) officially launched the blueprint for digital banking transformation as a guideline for expediting digital transformation for the banking industry that was innovative, prudent, and inclusive.
"The blueprint provides guidance to stakeholders and bankers, so that they can serve faster and become a bank that contributes better to our economy with prudential principles," Executive Chairman of Banking Supervisory at OJK Heru Kristiyana stated.
The blueprint for digital banking transformation provided rules in the form of general principles to offer space for the industry to develop.
The blueprint also facilitated and encouraged digital innovation without ignoring the precautionary principle.
The blueprint will continue to be improved to accommodate the dynamics of the banking business.
Through the blueprint for digital banking transformation, he noted that the OJK will provide guidelines on five elements: data, technology, risk management, collaboration, and institutional arrangements.
"In data, we provide data protection guidelines that include accuracy, storage restrictions, integrity and confidentiality, accountability, data minimization, and limiting purposes, as well as being fair and transparent," Heru Kristiyana expounded.
The OJK will regulate data transfer that includes types of customer data, parties, as well as data exchange arrangements.
The OJK will also provide guidelines for data governance and principles as well as operational governance.
"In technology governance, focus on aligning business strategy and information technology investment in order to create business value for investment and information technology," he affirmed.
In addition to the technology element, the OJK provides technology architecture guidelines as well as emerging technology and applications that encourage banks to adopt the latest emerging technologies.
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In terms of the risk management element, the OJK provides guidelines on IT risk management, outsourcing, and cybersecurity. For the collaboration element, the OJK provides guidance on sharing platforms and implementation of partnership.
"In terms of institutional arrangements, we provide guidance on leadership and readiness related to digital implementation and clear and adequate sources of funds as well as commitments to fund digital infrastructure in a sustainable manner," he stated.
The financial industry, especially banking, continues to innovate and adapt as an effort to provide the best service for the community.
One of the efforts made is digital transformation to improve service quality.
The existence of digital transformation has also made more banks to establish themselves as digital banks. Through digital transformation, banks are expected to reach a larger number of young customers, who are now more digitally savvy.
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Editor: Fardah Assegaf
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