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The power of technology to achieve equity on ASEAN’s economic stage
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or a country, or a region, to move forward toward a more inclusive future, a spotlight must be shone on marginalized communities to make sure that development does not result in wider disparities.
While Indonesia is making great strides on the world stage, inequality must be addressed. Only 52 percent of Indonesia’s population has access to financial-inclusion accounts, globally the average is about 74 percent.
Being the backbone of the country’s economy, the number of micro, small and medium enterprises (MSMEs) continues to grow. There are 64.6 million businesses with 110 million entrepreneurs and workers, which account for 37 percent of Indonesia’s total GDP of US$2.5 billion. However, MSMEs account for only around 19.9 percent of the total loans.
On the other hand, Indonesia has 203 million internet users, 196 million with mobile internet access and 94 percent of people have access to broadband; it is a suitable foundation for digital bank growth.
“The key challenges to aspiring entrepreneurs as areas of opportunity for growth are the demographics in Asia and the gaps posed as opportunities such as financial inclusivity, MSME growth and internet access,” said Axton Salim, director of PT Indofood Sukses Makmur.
Indofood, an Indonesian food company with a vast global presence, proudly announced its participation in the ASEAN Business and Investment Summit 2023 (ABIS), themed “ASEAN Centrality: Innovating toward Greater Inclusivity.”
Axton joined one of the panel discussions entitled “Envisioning ASEAN’s Economic Future: Trends, Transformations and Triumphs,” focusing on the potential growth of the economic landscape of the vibrant bloc and its member countries.
Moderated by Michael Lawrence chief executive of Asia House, Axton was joined by Anindya Bakrie CEO of Bakrie Group; Le Thi Thu Thuy global CEO of Vinfast; Zhengjun Zhang Jr. vice president of Huawei Asia Pacific; and Michaela Browning vice president of government and public policy for Google Asia Pacific.
Axton, who is also a director of Bank INA, stated that digital innovation in the banking industry can help close the gaps in financial inclusivity to help serve the unbanked population.
“We see how banks through digital can help the unbanked market. Therefore, we try to connect the traditional with the digital side. With technology, it has become hassle-free to sign up and open an account and the account holders can deposit and withdraw money through thousands of banking agents, grocery stores and mini markets across Indonesia,” explained Axton.
“Also [Bank INA] offers same-day approval with technology for productive loans with attractive rates. Besides these services, we also provide enrichment programs by providing supply chain management, point of sales, accounting solutions and basic business training for micro, small and medium business customers. These are the things that we can do using digital and helping the unbanked; without technology we would not be able to reach as many people,” he added.
The two-day ABIS event served as a platform for key decision-making figures and world leaders to address challenges including digital transformation, sustainable development, health resilience, food security and trade and investment facilitation.
The summit presented an opportunity for countries and businesses across the region to come together and share best practices on how to overcome obstacles through collective action.
ABIS 2023 brought together more than 2,000 participants from 50 countries including government officials, CEOs and senior executives representing multinational and regional corporations. Therefore, it is hoped all stakeholders will create innovations toward greater inclusivity.
