Jakarta (ANTARA) - Indonesia's digital economic system is recognized by ASEAN member countries, the Indonesian Joint Funding Fintech Association (AFPI) has said.

Secretary General of AFPI Sunu Widyatmoko said at the Meeting of ASEAN Finance Ministers and Central Bank Governors (AFMGM) in Jakarta on Tuesday that Indonesia's digital economy will be an example for ASEAN countries in the future.

"We are participating in the ASEAN chairmanship 2023 roadshow, the country counterparts recognize that Indonesia's digital economy, especially peer-to-peer (P2P) lending business, will be an example for countries in ASEAN," he said.

According to him, the advantages of Indonesia's digital economic ecosystem mainly lie in infrastructure and regulations.

For example, the infrastructure advantages of Indonesia's digital economic ecosystem are reflected in the biometric technology provided by the Population and Civil Registration Department (Dukcapil). This technology can play a role in reducing fraud in P2P lending.

"This can help fintech lending activities, including MSMEs (micro, small, and medium enterprises) in Indonesia," Widyatmoko said.

From a regulation point of view, Widyatmoko revealed that many business actors participating in the ASEAN chairmanship 2023 roadshow activities have expressed an interest in conducting a comparative study on regulations in Indonesia.

He said this indicates that the regulations prepared by the Indonesian government have managed to accommodate digital economic activities, including P2P activities.

Based on data provided by the Financial Services Authority (OJK), as of July 2023, the total P2P lending funding reached Rp657.85 trillion, with 102 organizers, 166.8 thousand active donors, and 20.4 million active fund recipients.

Meanwhile, the outstanding funding value was recorded at Rp55.98 trillion, with the minimum achievement rate (TWP90) touching a level of 3.47 percent.

On a separate occasion, expert staff for digital transformation, creativity, and human resources at the Coordinating Ministry for Economic Affairs, Rizal Edwin, said that in 2022, Indonesia controlled about 40 percent of ASEAN's digital economic market share, which was worth 194 billion US dollars.

Indonesia also played an active role in forging international trade cooperation that would have a significant impact, such as the ASEAN free trade area and comprehensive economic partnership agreements (CEPA).

With these developments, Indonesia's digital economy is projected to reach US$150 billion, or the equivalent of Rp2,333 trillion, by 2025.

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Translator: Imamatul Silfia, Cindy Frishanti Octavia
Editor: Rahmad Nasution
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