JAKARTA (TheInsiderStories) – The good news for financial technology (FinTech) entrepreneurs in Indonesia, now a special joint office FinTech has been established to continue the collaborating in developing of the industry in Indonesia.
UnionSPACE CEO Albert Goh expressed the inauguration ceremony which was also accompanied by the National Working Meeting of the Association of Indonesian Fintech (AFTECH) will be the container 130 FinTech pioneer company in Indonesia.
“FintechSPACE will become the center of industrial activity FinTech in Indonesia where key players can come together and collaborate for the development of this industry,” said Albert in a written statement on Thursday (06/09).
He hopes the collaboration of FintechSPACE and AFTECH could introduce and educate the public about the FinTech) in Indonesia will be able to contribute the progress of the national FinTech industry.
“We are committed to contribute to raising domestic fintech in advancing fintech in Indonesia. With this we hope to work with our many featured fintech startup born in the future,” said Albert.
FinTech could help Indonesia’s micro, small, and medium enterprises (micro-SMEs) and boost the financial inclusiveness. According to the CEO of International Finance Corporation (Philippe Le Houérou that Indonesia’s micro-SMEs suffer difficulties in accessing credit.
The finance gap for micro-SMEs was estimated at US$166 billion or 19 percent of GDP in 2017, even though the micro-SMEs have an important role in Indonesia’s economy. There are 58 million micro-SMEs in Indonesia that employ 89 percent of the private sector workforce and contributes to 60 percent of the country’s GDP.
Le Houérou said, Indonesia has taken several important steps to expand financial inclusiveness, but more needs to be done to bridge the financial access gap.
Currently, there are 64 registered FinTech that pocketed Financial Service Agency permission to disburse loans. However, Indonesia FinTech Association recorded 235 FinTech companies as its members with over half of those established in the last two years. Digital payments by FinTechs have reached a total transaction value of $21 million.
The FinTech lending is expected to improve Indonesia’s low level of financial inclusiveness. Only 49 percent of adults in Indonesia have access to formal financial services, according to the 2017 Findex.
The FinTech is expected to help Indonesia’s goal to increase the financial inclusiveness to 75 percent by 2019. FinTech has a big opportunity in Indonesia as over 69 percent of the unbanked population own personal mobile phones.
Indonesia’s FinTech industry grew rapidly which has more than 30+ million users, 3+ million agents covering 350 counties/cities.
UnionSPACE is a provider of shared workspaces largest and experienced who have been present earlier in Manila, Kuala Lumpur and Bangkok, and began operations in Indonesia (Jakarta) since 2014, and provide business services as thorough as a co-working space, private office, virtual office, to the management of the establishment of the company.
UnionSPACE has been transformed from the previously named CRE8 because of the support of the Morning Star Ventures and GAN Konsulindo. Morning Ventures is the most active startup investor and has invested in startups featured as Investree, Cekaja, Qareer and Pawoon. Meanwhile, GAN Konsulindo overshadow Plug and Play Accelerator program Silicon Valley native who was appointed by President Jokowi on a visit to the United States some time ago.
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