For this reason, OJK will continue to make improvements to policies that are accommodative in mitigating digital issues
Jakarta (ANTARA) - The rapid digital transformation in the financial services sector must help maintain stability in the financial sector, Deputy Chairperson of the Board of Commissioners of the Financial Services Authority (OJK), Mirza Adityaswara, has emphasized.

"For this reason, OJK will continue to make improvements to policies that are accommodative in mitigating digital issues," he informed at the closing ceremony of the “4th Indonesia Fintech Summit & National Fintech Month 2022,” which was accessed online from Jakarta on Monday.

In addition, he said that digital innovation in the financial sector must adhere to the principle of prudence and be supported by a reliable risk management framework.

Based on data from the Indonesian Fintech Association (AFTECH), this year, more than 20 types of digital financial services are being offered by approximately 306 financial technology (fintech/fintech) companies and institutions.

These services include digital payments, online loans or peer-to-peer (P2P) lending, aggregator services, innovative credit scoring, financial planning, and crowdfunding in the capital market or security crowdfunding.

Adityaswara said that OJK appreciates fintech organizers who have continued to contribute to efforts to support Indonesia's economic growth.

This contribution can be seen from the role of P2P lending, which accounts for 44.3 percent of loans in Indonesia or Rp8.26 trillion in loans to micro, small, and medium enterprises (MSMEs) and other productive sectors.

Security crowdfunding has also recorded a collection of Rp661 billion, which is ready to be distributed for MSME development.

"Digital financial innovations, totaling 93 platforms, have contributed to more than 2 trillion in financial service transactions in Indonesia," Adityaswara said.

Earlier, Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki stated that MSME players need to embrace digital transformation to gain access to wider markets.

“MSMEs need digital transformation for several things, (one of which is) to access wider markets,” he said after attending the opening of the “Digital Transformation Expo (DTE)” at the Bali Nusa Dua Convention Center, here on Sunday.

Digital transformation could also be utilized by MSMEs to access financing or raw materials and for entrepreneurship development.

Masduki lauded the ongoing digital transformation of MSMEs, noting that at least 21 million MSMEs in the country have entered the digital ecosystem.

He said that the continuous improvement of infrastructure and many new initiatives made by various parties, including digital platforms, will help more MSMEs to enter the digital ecosystem.

"With infrastructure improvements, including many new initiatives, these digital platforms on a smaller or local scale will present opportunities to MSME players everywhere to enter the digital economy," he said.

The minister further said that MSMEs can make the most of the metaverse technology that has currently started to develop in order to go digital.

According to him, the metaverse could provide many benefits to MSMEs, especially in terms of sales and promotions.

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Translator: Agatha O, Azis Kurmala
Editor: Sri Haryati
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