JAKARTA (TheInsiderStories) – Indonesia Financial Services Authority (FSA) inaugurated the operation of OJK Innovation Centre for Digital Financial Technology (OJK Infinity) which aims to build the FinTech ecosystem into a part of the national financial system that benefits the community and encourages economic growth.
“Through OJK Infinity, the FinTech industry is expected to be able to deliver innovative, effective, efficient financial services and continue to prioritize consumer protection,” Wimboh Santoso said at the launch of OJK Infinity in Jakarta on Monday (20/08).
OJK Infinity will function as a forum for discussion and collaboration between industry, regulators, government, academics and other innovation hubs to reach the three OJK Infinity functions like facilitating regulatory sandbox as a FinTech incubator to balance innovation with consumer protection.
Furthermore, the office as an innovation hub for the development of the Digital Financial Industry (DFI) also as a center of education for both financial service players, consumers and academics who will become DFI activists as Indonesian economic actors in the future.
Followed the launching, FSA will issue the regulation on DFI which will become a legal umbrella to protect all innovations in the digital financial sector. This rule was formed on the basis of the need for a legal basis for financial innovation that currently exists in the community so that it can provide broad benefits to the community and protect the interests of society.
Commenting on the initiative, Minister of Information, Communication and Technology Rudiantara is optimistic that 75 percent financial inclusion targets will be achieved following the improvement of Palapa Ring Projects.
He said, currently more than 130 million people in Indonesia have cellular phones but only tens of millions have access to financial institutions. With the operating of Palapa Ring Barat since March 2018 and Palapa Ring Tengah start to operate by the end of September, he believed all the peoples will connect to the financial institution.
“For the Eastern Palapa Ring which covers 41 regencies in West Papua and its construction Papua will be completed in December 2018,” said Rudiantara.
The minister stated that the FSA’s efforts showed a paradigm shift in the role of the government. In particular, he affirmed the government’s commitment to protect the public from the potential for adverse FinTech.
To date, the number of peer to peer lending companies or products registered with FSA is 63 with a total distribution of peer to peer funds of Rp7.64 trillion (US$534.26 million) by the end of June 2018 and has been channeled to 1.09 million borrower accounts.