RI's Digital Economy Potential Is Great, OJK Pursues Regulatory Umbrella

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) is said to continue to make efforts to formulate regulations to balance technological innovations in the financial sector.

The Head of the OJK Integrated Financial Services Sector Policy Group, Enrico Hariantoro, said that the explosion of digital technology that met with a large market potential in Indonesia had its own challenges for the authorities.

According to him, efforts to optimize this economic potential will increase the competitiveness of Indonesia's digital financial products.

"We have to be fast, otherwise it's not possible to just be spectators in our own country," he said in today's webinar, Thursday, February 24.

In particular, Enrico explained that OJK had taken strategic steps in mitigating the negative excesses of these technological innovations through the development of a regulatory sandbox. Through this method, it is hoped that it can become a means of coordination between regulatory agencies in the field of digital innovation.

Furthermore, in the regulatory sandbox there are 12 categories of innovation, including 83 digital financial innovations that have contributed more than IDR 90 billion to the economy since 2018.

Then, there were 113 peer-to-peer lending platforms with 73.2 borrowers accounts and more than Rp295 trillion in funds distributed.

Then, for securities crowdfunding, there are 7 platforms that have raised funds of around Rp.473 billion with a total investor of more than 96,000 entities.

"In general, OJK sees that the challenge of expanding digital finance is also in terms of low literacy which encourages an increase in cyber crime and misuse of personal data (cyber crime)," he said.

"Therefore, we need a law that regulates the security of personal data as well as clear implementation in the field to balance the digital financial products that are currently developing," concluded Enrico.