Jakarta (ANTARA) - Deputy Minister of Finance, Suahasil Nazara, on Thursday said that financial technology (fintech) innovation must be supported by security guarantees and regulators need to participate in its development.

"Innovation in the technology sector is very important as we want to continue to develop it, but we must also encourage security, stability, and development," he stressed at the Indonesia Fintech Summit & Expo (IFSE) 2023 in Jakarta.

The role of regulators is very important in fintech innovation because there are many aspects that need to be maintained, such as data security and transaction security, he explained.

Therefore, the government has devised the Law on the Development and Strengthening of the Financial Sector (P2SK), which regulates consumer protection, financial literacy, inclusion, and innovation.

According to him, Indonesia's financial sector can develop and be trusted because it has strong regulations, especially concerning provisions for promoting innovation.

The government, as a fintech regulator, is seeking three things in fintech development, he said. First, fintech must be developed to ensure financial deepening.

Second, financial inclusion, that is, fintech must grow so that financial services can be provided to as many Indonesians as possible.

Third, fintech must develop while maintaining financial stability, he added.

Not only the government, Nazara said, the Financial Services Authority (OJK), Bank Indonesia (BI), and the Deposit Insurance Corporation (LPS), which are members of the Financial System Stability Committee (KSSK), as well as the Ministry of Finance will continue to regulate the Indonesian financial sector.

The deputy minister then asked all fintech players to cooperate with regulators to pursue new innovations toward achieving the country's vision of becoming advanced by 2045 by supporting a deeper, inclusive, and stable financial sector.

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Translator: Agatha V, Kenzu
Editor: Azis Kurmala
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