Jakarta (ANTARA) - Finance Minister Sri Mulyani reminded the public of the consequences and risks of using digital technology, especially financial technology (fintech), ranging from personal data breaches, potential losses, and fraud to exclusion.

During the period from 2018 to 2021, the Investment Alert Task Force suspended the operations of as many as 3,365 illegal online lenders in Indonesia.

“This data reflects the challenges for fintech industry's players that are committed to continuing to maintain a good industry and the regulators,” the minister stated at the 3rd Indonesia Fintech Summit 2021 monitored online here, Saturday.

To this end, Sri Mulyani assessed that adequate regulations and supervision must complement the various conveniences offered by digital technology that protect consumers whilst not dwarfing the fintech industry itself.

Related news: Action taken against 3,631 illegal online lenders since 2018: OJK

Earlier, at the opening of the 2018 IMF-World Bank Annual Meeting in Bali, President Joko Widodo (Jokowi) had expressed concerns regarding fintech.

The minister said that the Bali Agenda was issued in the fintech sector that included 12 elements to regulate the digital economy.

The 12 elements encompassed the strengthening of fintech from the government and regulators' sides, activating new technology to improve financial services, keeping the market open and accessible, and encouraging fintech to promote financial inclusion.

The other elements entail adapting the regulatory framework and supervisory practices that are part of the Financial Services Authority (OJK), maintaining financial system integrity, modernizing the legal framework, ensuring stability of the monetary system and financial markets and data to maintain fintech sustainability, as well as encouraging international cooperation.

“The government understands that fintech provides opportunities for more democratic and equitable development,” Mulyani remarked.

However, the minister noted that more democratic and equitable development cannot be realized if there are still sections of society that cannot yet access technology and the internet. Related news: Fintech financing to productive sectors at Rp114.76 trillion: OJK
Related news: Fintech monitoring needed alongside financial literacy education

Translator: Agatha Olivia, Raka Adji
Editor: Suharto
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