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BI launches fintech office, eyes teamwork with industry players
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Booming industry: President Joko "Jokowi" Widodo (third from left) and Finance Minister Sri Mulyani Indrawati (fourth from left) inspect a digital panel display in Fintech Festival in Jakarta on Aug. 30. Bank Indonesia (BI) launched a special office on Monday to facilitate the development of the financial technology (fintech) sector in an effort to ensure that the burgeoning industry would benefit society. (tempo.co/File)
B
ank Indonesia (BI) launched a special office on Monday to facilitate the development of the financial technology ( fintech ) sector in an effort to ensure that the burgeoning industry would benefit society and work hand-in-hand with the country’s financial system.
“We have come to the conclusion that technological innovation is inevitable. With the rapid changes, regulations should not try to precede innovation, but it should stay close to innovation,” the central bank governor, Agus Martowardojo, said prior to the inauguration of the BI fintech office in Jakarta.
The central bank said that its fintech office would handle four major duties: facilitating the exchange of ideas and information; presenting the latest information of fintech development through regular meetings with authorities and international institutions; assessing and mapping the risks of business models and implementing the so-called “regulatory sandbox”; and providing one-stop services to help fintech players understand regulatory policies.
“As part of the assessment function, the BI fintech office is introducing an initiative called a regulatory sandbox. The initiative can be seen as a laboratory where startups and regulators assess a business model before launching it for customers,” Agus said.
Currently, there are about 120 fintech players operating in Indonesia, of which 56 percent are engaged in the payment, clearing and settlement business.
According to online statistics portal Statista, the value of fintech’s financial transactions in Indonesia would reach US$14.5 billion in 2016. (win/hwa)
