Era Of Digitization, Cash Still Powered In Economic Turnover

Rupiah illustration (Photo: dock. Antara)

JAKARTA - Cash is still considered to play an important role in the circulation of the domestic economy. However, the digital economy is experiencing rapid growth in Indonesia.

President Director of PT Jalin Payment Nusantara (Jalin), part of the Holding BUMN Danareksa, Ario Tejo Bayu Aji said, data from Bank Indonesia shows that over the last four years, transactions using cash have continued to increase in volume.

In line, he added, the circulation of cash in society also shows positive growth from 2018 to 2022 which means how vital the role of cash is in the life of the Indonesian people.

"Although the digital payment system has become a strengthening trend in the last five years, cash still plays an important role in society with cultural diversity and geographical conditions in Indonesia," he quoted Antara as saying.

Ario emphasized that financial institutions play an important role in ensuring the availability of access to cash and the public has the freedom to choose the payment mechanism according to their needs.

This phenomenon provides the basis for payment system providers to strengthen cash transaction infrastructure by combining various banking services, such as integrating the management of the Independent Cash Machine (ATM) and Cash Recycling Machine (CRM) machines into an integrated network.

According to him, the integration of cash point transactions also ensures that the needs of cash and digital transactions of the community can be met properly.

According to Ario, the ATM and CRM integration models, which are currently being carried out by Jalin, have proven successful in other countries, such as the Netherlands and Hong Kong.

This integration allows banks to optimize capital use in building ATM and CRM infrastructure networks, thus becoming more efficient.

In addition, he added, with the increasing affordability of ATM and CRM services by the public, access to banking services is also expected to increase.

This, he said, was not only related to maintaining the role of cash as one of the main pillars of economic growth, but also about ensuring that the circulation of money continued smoothly and safely amid the rapid development of the digital economy.

"Thus, Indonesia can maintain a balance between digital innovation and the need for cash to support sustainable economic growth," said Ario.