Payment System Innovation Can Increase Financial Inclusion

JAKARTA - Trissia Wijaya's Head of Economic Opportunities Center for Indonesian Policy Studies (CIPS) assesses that innovation in digitalized payment systems can increase financial inclusion.

He explained that the payment system, which was initially only dominated by traditional financial institutions such as banking, has now become more innovative with the presence of technology-based financial companies or fintech, which can be easily utilized by the public.

"The payment system is now becoming more inclusive and diverse thanks to the involvement of non-traditional financial institutions such as fintech," he said in an official statement, quoted from Antara, Thursday, May 25.

Compared to traditional financial services, fintech can be more easily utilized by internet users in Indonesia, which based on a survey by the Association of Indonesian Internet Service Providers (APJII) reached 215.63 million people in March 2023, an increase of 2.67 percent compared to the previous period of 210.03 million users.

The increase in the performance of the digital payment sector in Indonesia also needs to be balanced by personal data protection and cyber security.

"The ratification of the Personal Data Protection Law is a positive step, but the process of determining the derivative rules and harmonization of regulations after that also still needs to be done," he said.

The government needs to ensure that the application of consumer protection is expected to increase consumer confidence in transactions and in paying digital taxes.

In the future, the development of digital infrastructure that focuses on inclusiveness also needs to be the focus of the government. Roadmaps and existing regulations should be optimized by responding to various dynamics and potential problems that may occur in line with the development of digitalization," he said.