Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati on Tuesday said that the government is using the state budget as a fiscal instrument to respond to digital needs.

"The government is using its fiscal instrument to recognize that digital technology exists and we support it," she said here on Tuesday.

According to Indrawati, digital technology can transform the economy, hence, the government is keen to use the state budget to build infrastructure and educational programs to support the digital sector.

The minister said that digital development has both advantages and challenges. The emergence of artificial intelligence (AI) is said to carry the risk of 'disrupting' human jobs. However, she said, with the right response, AI can be used to script social transformation.

For example, various types of operations in the Finance Ministry have been shifted to digital methods, she expounded. Earlier, the ministry allocated a budget for the cost of printing and copying files, but now, all documents can be processed digitally, and the budget can be used for other spending.

The development of digital technology has also created new opportunities and provided added value to the financial sector, for instance, digitalization in the insurance sector, digital payment methods, and credit payments, Indrawati said.

She affirmed that the Financial System Stability Committee (KSSK) is continuing to monitor and regulate digital development.

The KSSK comprises Bank Indonesia (BI), the Finance Ministry, the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS), who have been assigned the task of formulating appropriate regulations and policies on digital technology.

"We must also observe the pros and cons. Maybe in the next ten years, digital technology will undergo tremendous changes, the implications of which will greatly determine the sociopolitical landscape and people's welfare," Indrawati said.

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Translator: Imamatul S, Kenzu
Editor: Azis Kurmala
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