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JAKARTA - Indonesia has the potential for a growing digital economy and is the largest in Southeast Asia. Even though digital financial services are expected to continue to grow, there are still a number of obstacles that need to be overcome through collaboration between regulators and industry players.

Based on research conducted by Microsoft and the International Data Corporation (IDC), it is known that 46 percent of Indonesians do not trust digital services.

"In fact, customer trust is very important to provide a safe and comfortable digital transaction experience. Digital identity technology is one of the keys to building customer trust and growing the digital economy in Indonesia," said Dickie Widjaja, Deputy Secretary General I of the Indonesian Fintech Association (AFTECH) in a statement.

Eko Rizanoordibyo, Executive Analyst of the Directorate of Digital Financial Innovation of the Financial Services Authority (OJK) also revealed that digital identity has become the foundation for progress and growth in the digital financial industry.

"In addition to providing trust and security, digital identity can also protect user identity and enable safe, efficient and inclusive financial services," he said.

According to him, one form of digital identity that is able to provide security, prevent fraud, as well as have an impact on business development is a digital signature. With digital signatures, business workflow becomes more efficient and secure, so there is no need for physical documents.

However, it cannot be denied that various modes of crime in the digital world will always exist. Therefore, Head of Product Solution VIDA Ahmad Taufik said that digital security technology must always develop.

“VIDA Sign facilitates safe and efficient electronic transactions while ensuring their legal validity and authenticity. We always implement end-to-end security with the highest standards which are always audited by Kominfo," concluded Ahmad.

According to Ahmad, the development of digital identity in Indonesia is still in its early stages, but the potential for this technology to have a very large positive impact on the country, such as the use of digital signatures, which can help secure documents or electronic transactions, reduce fraud and identity theft, and encourage business and economic growth.


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