We all understand that we have enormous potential
Jakarta (ANTARA) – Indonesia’s digital economy is the largest by value in Southeast Asia, with a total gross goods value (VGM) reaching $ 70 billion, said Finance Minister Sri Mulyani Indrawati.
“We all understand that we have enormous potential,” the minister said at the 3rd Indonesia Fintech Summit 2021 here on Saturday.
According to research from Google, Temasek and Bain & Company, digital payments will continue to grow strongly in Indonesia, with the gross value of transactions expected to reach $ 1.2 trillion in 2025, she noted.
Digital payments dominate Indonesia’s FinTech sector, in addition to peer-to-peer (P2P) lending, which in recent years has been steadily increasing, both in terms of the number of customer accounts. borrowers, lenders and the total face amount of the loan, she added.
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According to the Minister of Finance, electronic money transactions in Indonesia continued to increase, growing more than 100 times, from just 2,000 billion rupees (139 million US dollars) in 2012 to 205 trillion rupees (14 , US $ 26 billion) in 2020.
“This illustrates that in less than a decade there has been a 100-fold increase. So we’re not talking about single-digit linear growth, it’s exponential,” she noted.
Indrawati said there has been continued adoption of digital financial services accompanied by a change in people’s behavior towards the digital economy, accelerated by the pandemic.
Therefore, the digital financial sector, including fintech, is well positioned to play an increasingly important role, she added.
Therefore, the government and regulators must continue to create a good digital environment with proper regulation, to anticipate its negative impact, such as illegal online lending, said Indrawati.
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