Encourage Digitalization, BI Boss Reveals Regional Bank Performance Needs To Be Improved

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said there were several challenges in increasing regional digitization, one of which was the performance of regional banks which had to be improved so that the contribution to the economy could be maximized.

"At the level in the regions, how the role of banking, including banking in the regions, also needs to be continuously improved in order to increase capacity in regional economic and financial services," he said at the National Coordination Meeting for the Acceleration and Expansion of Regional Digitalization (P2DD) at Hotel Indonesia Kempinski, Monday, September 23.

In addition, Perry conveyed that there are demographic challenges that need to be overcome in accelerating regional digitization, namely creating jobs to meet industrial needs.

According to Perry, in the future the government needs to create jobs to be able to accommodate 70 percent of the demographics which are the millennial generation to be able to work so that they can avoid the middle income trap.

In addition, Perry conveyed that various demographic developments that will arise need to be observed so that the young population can be optimized.

Perry conveyed the next challenge, namely between the balance of technological innovation and the risks that arise, where the rapid development of digital needs to be responded to by cyber risk management and optimal personal data protection.

"Therefore, to answer this challenge, digital transformation both at the center and in the regions needs to be synergized," he concluded.