TheJakartaPost
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Most Indonesians still lack access to financial services, meaning that they do not have bank accounts and lack opportunity to engage in broader economic activities. According to the World Bank Global Findex in 2017, the unbanked population was about 50 percent. Therefore, there is still much to do.
Two popular companies from China, Alipay and WeChat Pay, have entered the market in Indonesia. Last year these two fintech firms went viral when national media reported that they could be used by Chinese tourists in Bali. This could have meant lost income for Indonesia as the transactions between tourists and merchants did not involve Indonesian institutions. To prevent loss, the government issued several regulations to anticipate the cross-border payment risks.
One of the main causes of financial exclusion is that many of the world’s poor lack proper personal identification and documented property rights. Blockchain technology can help to overcome this by storing tamperproof personal information, unlocking access to financial services while reducing the risk of fraud.
The rapid development of financial technology (fintech) is vital to propel future economic growth, but it requires a prudent regulatory approach to avoid a boom and bust, according to PricewaterhouseCoopers (PwC) Indonesia.
