Indonesia's Commitment To The G20: Encourage Digitalization For Inclusive Finances In Each Country

Illustration (Photo: Doc. Antara)

JAKARTA - The Indonesian G20 Presidency expresses full support for the use of digitalization to play a concrete role in the realization of inclusive and sustainable finance for each country. In addition, Indonesia views the importance of developing granular data, especially the development of credit data based on gender.

This came to light at the High Level Symposium in the series of side events of the G20 Global Partnership for Financial Inclusion (GPFI) Working Team in Yogyakarta today.

According to Bank Indonesia (BI) Governor Perry Warjiyo, the availability of payment infrastructure in all levels of society, encouragement for the use of digital payment instruments, increasing financial literacy, and strengthening consumer protection are the main encouragement for financial inclusion.

Therefore, he assessed that the G20 Presidency through GPFI formulated a financial inclusion framework to increase digitalization in order to increase productivity for the entire community by focusing on women, youth, and MSMEs.

"In line with this, BI has scored 3 achievements that make it easier for financial services in the payment sector, namely QRIS which encourages digital payments between platforms and has accommodated 20.5 million MSMEs, BI-FAST which facilitates digital payments quickly, safely, efficiently and available at all times, as well as Open API National Standards that support the integration and interoperability of banking and fintech services," he said in a written statement, Tuesday, October 4.

Meanwhile, Finance Minister Sri Mulyani revealed that digitalization is a key component for an inclusive economy, especially in remote areas to make more efficient economic transactions.

He said, there are at least six aspects of the MSME ecosystem where digitalization can optimize it, namely policies, financing, human resources, capital, support and culture.

"The government has implemented various digital innovations to encourage MSMEs, including in terms of finance related to payments, bookkeeping, and marketing, as well as MSME onboarding efforts to the digital ecosystem," he said.

On the other hand, Queen Maxima from the Netherlands expressed her appreciation to the Indonesian Presidency and the GPFI for the important deliverables that have been produced in an effort to encourage financial inclusion.

"Updating shared commitments to support women, youth, and MSMEs is an essential thing for inclusive, equitable, and sustainable growth," said Queen Maxima, who also serves as G20 GPFI Honorary Patron.

This G20 symposium reaffirms the importance of digital platforms in providing access to finance and loans efficiently and safely. In addition, this event is also a means to learn about the experiences of other countries in building a digital ecosystem.

Discussions also presented experts and international practitioners related to financial inclusion, including the Deputy Governor of the Central Bank of Brazil, Director of Central Bank China, Director of the World Bank, to practitioners and other academics.