According to the Office of Financial Services (OJK), Indonesia accounts for about 40%, or $77 billion, of the full value of digital economic transactions in Southeast Asia, in accordance with the 2022 e-Conomy South East Asia Report.
“The value of digital business transactions increased by 22 percent in comparison with the previous yr,” Ogi Prastomiyono, OJK’s general manager for insurance, underwriting and pension fund supervision, said on Thursday in Nusa Dua, Bali.
This achievement has catapulted Indonesia to the forefront of the ASEAN region’s digital economy, he says.
According to Prastomiyono, the number of economic technology (fintech) firms in a position to make financial services more efficient and accessible is one among the aspects supporting the event of the digital economy in Indonesia.
According to OJ in January 2023, there have been 102 financial technology firms connecting borrowers and lenders or offering peer-to-peer (P2P) lending.
According to the official, P2P lenders make the lending process easier, especially for debtors who’ve limited access to traditional banking services.
“Thanks to IT and technological innovations, loan disbursement can be faster and easier,” he said.
In addition, in January 2023, OJ UK recorded 97 digital financial innovations, which were classified into 15 business models, including progressive credit scoring (ICS).
According to Prastomiyono, ICS is a value-added element within the loan disbursement process that allows quick disbursement of loans on easy terms and features a buy now, pay later (BNPL) program.
OJK encourages the merging of credit rankings from traditional agencies and ICS because it ensures higher credit quality while broadening the scope of financing, especially for people without access to banking services.
He said that until now, conventional lending institutions were judged based on loan repayment rates and debt default history.
Meanwhile, ICS uses large data sets covering as many as 15 variables, from social media activity to online transactions (e-commerce), he added.
He said ICS has been a game-changer for micro, small and medium enterprise (MSME) owners who need credit but don’t have strong access to banks.
“We believe that Indonesia’s economy will grow well in 2023 under normal growth conditions. In 2022, it will increase by 5.31 percent. Despite the global crisis, inflation, higher interest rates and geopolitical issues this year, Indonesia’s economy has remained stable.” To say.
Source: en.antaranews.com
