Improving The Community Economy, OJK Encourages The Development Of Digital Financial Innovation

JAKARTA - The Financial Services Authority (OJK) continues to encourage the development and strengthening of the Digital Financial Innovation industry to create an inclusive, sustainable, digital financial ecosystem and support national economic growth.

Chief Executive of the Financial Sector Technology Innovation Supervision, Digital Financial Assets (IAKD) Hasan Fawzi said that technological developments have brought various significant changes, especially in the financial sector.

According to Hasan, currently entering the Digital Transformation 5.0, which focuses not only on the adoption of advanced technologies but also on human intelligence and social values as the center of technological innovation.

"This digital transformation is expected to be able to answer challenges in increasing financial inclusion by connecting technological innovation with the real needs of the community and opening up wider economic opportunities for all levels," he said in his statement, Sunday, October 13.

In responding to these challenges, Hasan said that the OJK took proactive steps by issuing various policies and regulations related to the development and strengthening of the IAKD industry in the midst of rapid digital transformation.

Hasan added that among them were by issuing POJK Number 3 of 2024 concerning the Implementation of Financial Sector Technology Innovation and issuing the Roadmap for Development & Strengthening IAKD 2024-2028.

According to Hasan, this roadmap aims to lay the basis for the strategic work plan that will be carried out by the OJK in developing and strengthening the IAKD sector.

Hasan further conveyed the concept of the Penta Helix Innovation Hub, which is the importance of collaboration between five main elements in the development of innovation, namely academics, the government, industry players, society, and the media.

Hasan explained that each element has an important role in creating inclusive and sustainable innovations.

"This cross-sector collaboration will enable better synergy in financial technology development, where the government provides regulations that support innovation, academics play a role in technology research and development, industry implements these technologies into real financial services, the public as service users actively participates in development, and the media help disseminate information and education," Hasan said.

As for OJK records, the massive acceleration of digital transformation cannot be separated from the development of Financial Technology or fintech which has been a bridge for people who have not been reached by conventional financial services.

Based on data from AFTECH and AFSI, the number of fintech in Indonesia shows progressive growth and currently more than 382 fintech companies are registered as members of the two associations.

Meanwhile, the value of digital trade transactions in 2023 is estimated to reach more than IDR 500 trillion.