OJK Claims Digitalization Of Financial Sector Has Been Spurred Since 2017: If Not Fast, Foreigners Can Take It

OJK chairman Wimboh Santoso. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso said that his party had been pushing for the digitization process of the financial services sector since 2017.

According to him, this effort is quite important to ensure that the strategic position of local players can be maintained considering that digital market segmentation is believed to be cross-border

"In digital products, the competition that occurs is global and we have to be fast, otherwise all financial products will be served by operators from outside Indonesia," he said while giving a virtual press statement after attending a meeting with the President at the Merdeka Palace, Jakarta, Thursday, June 10.

Wimboh added, almost all financial products can now be served by digital facilities. This then brings its own advantages in growing the financial services business more massively but at a relatively low cost.

"This is all intended to make it easier for business actors to provide services that are easier, cheaper, faster, and reach more remote areas," he said.

In his view, the digital concept is in accordance with the characteristics of the Indonesian region which has many remote areas.

"We believe that digital will reach more customers to remote areas but with lower operational costs," said Wimboh.

Furthermore, the development of the financial services sector is considered to be quite good with the existence of peer-to-peer lending financial technology (fintech) companies that specialize in financing the micro, small and medium sector.

"Currently, OJK has recorded that there are 146 fintech lenders that have been registered and officially licensed. Their contribution is quite large in the economy because it is recorded that they have distributed Rp194.1 trillion in financing according to the latest data," he said.

To note, the government through the Coordinating Ministry for Economic Affairs said that Indonesia is a fintech paradise in Southeast Asia because it recorded the highest growth ratio.

According to the report, the role of industry 4.0 companies is believed to have contributed around US$40 billion in 2020. That number is believed to continue to rise to reach more than 100 billion US dollars by 2025.