Digital Economy, Finance Key to Sustainable, Inclusive Growth: BI

JAKARTA (Antara) – Bank Indonesia (BI) Deputy Governor Filianingsih Henderda said the digital economy and finance are vital to achieving sustainable and inclusive economic growth.

„An inclusive digital economy and financial acceleration will result in equal access to economic opportunities and participation. We believe that if managed well, digital innovation will become a new source of prosperity,” he added.

Speaking at the Global Partnership for Financial Inclusion (GPFI) Symposium on Saturday, he said Indonesia’s potential to benefit from digitization is huge. Fourth largest internet users in the world.

Electricity, Internet data, high-speed Internet, and smartphones can achieve the potential of digitization by making it equally distributed, accessible, and affordable.

In the last five years, especially during the Covid-19 pandemic, the spread of digitization has strengthened.

The number of new digital customers increased by 21 million, internet penetration rose by 74 percent, and 98 percent of merchants in Indonesia have adopted digital payment methods, and 59 percent of them use digital financing.

„By 2022, the total sales value of Indonesia’s digital economy will rise by 22 percent. In Indonesia, fintech and e-commerce are thriving and providing innovative solutions that focus on consumers,” Henderta noted.

Also, digital innovation is considered to have the potential to increase the participation of the unbanked and underbanked in the financial sector.

Meanwhile, low digital financial inclusion, limited use of digital payments and lack of digital literacy can hinder the growth of the digital economy and prevent people from benefiting.

In the context of digitization, payment systems are an essential entry point for unbanked individuals to access financial services.

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Using digital payment methods or online payment platforms can make it more efficient for the unbanked to pay bills, buy goods or services, receive and send money.

Under the Payment System Blueprint 2024–2045, it aims to bring 91.3 million unbanked people and 92.9 million Micro, Small and Medium Enterprises (MSMEs) into a sustainable economy and finance with the help of digitization.

„We believe that financially excluded groups will have sustainable access to the financial system and reap optimal benefits from financial and economic inclusion,” Henderda said.

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Translated by: M Bagheer, Raga Adji
Author: Rahmat Nasushan
Copyright © ANTARA 2023

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