Jokowi: Indonesia's Financial Services User Index, Lags Behind Thailand And Malaysia

President of the Republic of Indonesia, Joko Widodo. (Photo: Presidential Secretariat)

JAKARTA - President Joko Widodo (Jokowi) said that Indonesia still has a lot of homework to do in terms of developing financial technology or financial technology (fintech). According to him, the financial inclusion index or users of financial services in Indonesia is still behind compared to several ASEAN countries. One of them, is Thailand.

"In 2019, our financial inclusion index is 76 percent. It is lower than some countries in ASEAN, for example Singapore 98 percent. Malaysia 85 percent, Thailand 82 percent," he said, at the Indonesia Fintech Summit 2020, Wednesday, November 11.

Meanwhile, said Jokowi, the level of national digital financial literacy is still low, which has only reached 35.5 percent.

"There are still many people who use informal financial services and only 31.26 percent of people have used digital services," he said.

Therefore, Jokowi requested that fintech companies not only act as lenders and online payments. But it must also be the main driver of digital financial literacy for the community.

Furthermore, he also wants fintech to function as a companion to financial planners, and expand access to micro, small and medium enterprises (MSMEs) in e-commerce marketing.

"Fintech innovators must also develop themselves continuously to carry out the function of aggregator and innovative credit scoring, providing equity crowdfunding and project financing services," he said.

Even though Indonesia's financial inclusion index is still behind compared to neighboring countries, Jokowi still appreciates the performance of fintech in the country because it makes a positive contribution to the national economy.

The contribution of fintech to national loan distribution this year reached IDR 128.7 trillion, an increase of 113 percent year on year (yoy).

In September 2020, there were 89 fintech operators who contributed Rp9.87 trillion to financial service transactions in Indonesia and Rp.15.5 trillion was disbursed by licensed fintech equity crowdfunding operators.

"This is a tremendous development," he said.